Shortening The Long Road To Reimbursement | AdvancedMD

Features Navigation

Live Chat (800) 825-0224 Live Demo

← Back

Shortening the long road to reimbursement

Medical Billing

Things are tough out there for labs and other healthcare organizations. Reimbursements have been declining. The inflation rate and expenses are rising. And finding and keeping staff can be a full-time job. It all adds up to a perfect storm that makes reimbursements – whether from insurers or patients – harder to obtain. The financial squeeze is tighter than ever. You can’t afford to forfeit or delay any revenue you’ve earned.

Organizations must also be wise that patients, frustrated by often-confusing medical bills, are taking a line from that famous song and are “not gonna take it anymore!” What they will take is their business to another provider who makes sure the entire process runs smoothly.

A smooth process starts with a clean order

Getting a clean order with the right clinical and financial information for the patient upfront is the key to maximizing reimbursement as it will lead to a clean claim. It’s also critical to patient satisfaction. Happy patients tend to return, and they also lead to happy healthcare providers who are likely to send more referrals your way.

So what stops a clean order? The three biggies we often see are issues related to inaccurate patient information, prior authorizations, and medical policy.

Data – a common denominator in each of these issues – is considered the world’s most valuable commodity. But data is only good if it’s accurate. It won’t provide much value to you if it’s not.

Inaccurate patient data

Inaccurate patient insurance and demographic information is a common problem. Each month in the U.S., it’s estimated that more than two million people switch health insurance plans. Think about that! Each time someone switches plans, the prior data becomes obsolete. Bad information can result in significant delays in reimbursement, or even worse: forfeiture of the revenue. And your staff likely spends time they do not have trying to chase down the right info with the physician, resulting in lost productivity or potentially lost referrals from physicians irritated that they or their staff are wasting their precious time tracking down the missing data you’re requesting.

Prior authorizations

Clean data includes having access to information that informs you up front if the patient needs prior authorization before undergoing any tests. Missing prior authorizations are one of the major causes of denied claims. I’d estimate that about 40% of physicians have staff who work exclusively on prior authorizations.

The consequence of that missing authorization can spread beyond the denial of the claim. It’s possible that while the lab is working to obtain authorization from the physician, the collected specimen could lose its viability, negatively impacting you as well as the patient who is asked to undergo an additional test or possibly opts to forego it. A survey by the American Medical Association (AMA) on the impact of the current prior authorization process found that 93% of physicians reported care delays and 82% reported that it can sometimes lead to patients abandoning the recommended treatment.

Medical policy

Medical policy issues like a missed diagnosis code, or those that result in a wrong test being ordered, can also hinder a clean order and have vast implications for everyone involved. For the patient, it can mean delayed care, added worry, or a billing headache. For the lab: an unreimbursed service and wasted time and resources. For the physician: a stall in the delivery of care, an upset patient, and an administrative hassle.

“If you solved it on the front end, most of the issues would be gone.” – A quote from most everyone we talk to.

The traditional billing and reimbursement approach has often focused on the backend, seeking to find and fix errors through often cumbersome, manual, and lengthy efforts. By this point, the service was already rendered or the test provided, and the patient may have even forgotten about the appointment. Payment and patient satisfaction are at risk.

Leveraging data automation appropriately to get accurate patient data at the front end is key to your lab’s survival and growth. It can help simplify your workflow, remove roadblocks, and improve your bottom line, staff efficiency, and repeat business.

What are you waiting for? Let’s get started.

Many are now rethinking that traditional approach and looking to technology to catch and fix issues before they become problems. Getting accurate patient data upfront can help mitigate the three big issues and pave the way for a clean order and a clean claim. It not only can help patients get the right test at the right time and pay the right amount, it can also help labs focus on running tests they can get reimbursed for.



Avatar photo
JD Donnelly, CEO of FrontRunnerHC
FrontRunnerHC's data automation platform helps healthcare organizations maximize reimbursement sustainably & efficiently while also enhancing their patients’ experience with instantaneous access to patient demographic, insurance, and financial information as early as possible and often as needed. FrontRunnerHC leverages its access to the most payers in the industry to find, verify, and fix patient information in real-time and at any point during the care journey. Defining the patient experience as the clinical experience + the financial experience™, FrontRunnerHC helps address the challenges that impact the provider’s ability to get paid and jeopardize the patient’s experience. Recognized by Inc. magazine on their list of “America's fastest-growing private companies" and “America’s Best Workplaces.”

Topic: Medical Billing, Revenue Cycle Management


Other Resources Related to This Topic


Medical Billing

Advanced Reporting & Analytics Demo

Advanced Reporting and Analytics is unified within our practice management, EHR, and patient engagement suite to give...

Business

Centralized Billing Office Demo

Central Billing Office, or CBO, is unified within our practice management, EHR and patient engagement...

Medical Billing

Harnessing Intelligent Data to Improve Your Clients’ Bottom Line

In this recorded webinar, you’ll learn some of our most successful billing partners favorite key...

“The money I have invested in AdvancedMD is miniscule compared to the return. I have never been more efficient – ever – in my professional life as I am now.”

Jed Shay, MD
The Pain Care Center

Read the story  ›

“[Our] patients are very well-educated and well-informed, and they want to see results quickly. The practice has to run extremely efficiently and be accessible to them. The nice thing about [AdvancedMD] is it has allowed me to be more efficient both in and out of the office. Now I don’t have to come back into the office, which is great for my family and everything else. It saves me a lot of time – probably an hour a day on the three days I work in the second office.”

Keith Berkowitz, MD
Center for Balanced Health

Read the story  ›

“The best thing I ever did in private practice was getting AdvancedMD—it has liberated me.”

Estaban Lavato, MD
La Loma Medical Center

“Having integrated practice management and EHR is absolutely wonderful, you don’t have to flip back and forth between systems—all of your information is at hand when needed.”

Raju Raval, MD

Read the story  ›