Many hospitals and health care systems face the problem of revenue leakage. Revenue leakage refers to the loss of revenue in an industry. It is important to note that many industries end up losing 10% of their annual revenue for this reason. Financial managers see this as one of their biggest challenges. However, using the right revenue cycle management strategies, many healthcare organizations can recover their losses. This article looks at ways for healthcare providers to deal with not receiving proper payments.
Make Sure You Have Correct Patient Information
More often than not, payment claims are denied as a result of patient information not true. Due to human error, there’s a possibility of misspelling the name. You can choose practices such as photocopying IDs of all patients, verifying patient information, checking insurance cards thoroughly, and evaluating what medical health insurance companies cover and what they do not. Taking these easy but significant steps will help you reduce rejection cases.
Make Payments Accessible For Everyone
Often, healthcare organizations limit their prospects for getting paid by offering a limited number of payment options. For example, many companies do not accept many types of credit cards or do not have payment plans. Due to lack of accessibility, risk Health Revenue Leak increased manifold because many shoppers were forced to not pay up front. People who do not pay up front are 50% more likely to not pay for their medical process. You can make payments more accessible by increasing your payment opportunities and creating payment plans. This will significantly help you reduce revenue leakage.
Reducing Claim Rejections
You can reduce claim rejections by using an evaluation system. Often, claims are rejected as a result of incomplete patient information, patient uneligibility, duplicate claims, partial service information, inadequate plan information, medical code errors, etc. All of this can be avoided by having an efficient check system in place to keep an eye on all the details and evaluate whether or not they are correct or not. You can find out about the most common reasons why claims are rejected and work to fix the problem.
Minimize Burnouts
According to a report by the American Medical Association, the cost per physician burnout is estimated to be between $500,000 and $1 million per year. This is because it takes lots of effort and time to find another doctor when an exhausted doctor abruptly takes time off or on leave. Boredom is also the reason why many doctors become negligent, careless, or frustrated with their jobs. This also leads to medical errors, malpractice and hence, increased expenses for hospitals. In addition, all of this can lead to lower patient satisfaction rates, meaning your hospital will get fewer patients and therefore, lower revenues.
If you want to address revenue leaks in your health care organization, it is vital to follow the steps discussed in this article. This will help you minimize patient dissatisfaction while increasing profitability. You can choose other practices like automating your inventory, rescheduling payments, following up with patients about expenses, etc. Using this strategy will certainly help you receive your payments on time.
