Medical billing is at the core of any medical practice’s operations. Whether patients have health insurance or are paying out-of-pocket, some type of medical billing is involved.
As medical care costs rise, patients become less and less able to pay their medical bills. It is estimated that more than 50 percent of patients owe over $1,000 to their health care providers for past medical care.
Researchers have found a high error rate in medical billing. This is not only bad for patients but also a matter of great concern for medical practices.
The following are two of the most serious repercussions from errors in medical billing:
Medical Billing Errors Lead to Poor-Quality Patient Care
Medical billing errors may be purely clerical, but they reach a personal level by impacting the patient. It may be due to a front-end staff member simply entering an incorrect code or information.
For example, a medical clerk may enter a diagnostic code for a costly examination when in fact it was just a routine checkup. Medical billing errors like this can cause denials from the patient’s insurance company.
When the insurance company rejects the claim, this makes it more difficult for the patient to receive the follow-up care that they need. The patient will then have to deal with the emotional, mental, and physical anguish that comes with not receiving the proper care.
And it’s not only patients who will suffer. The turnaround time for rejected claims due to a clerical error can take 45 days, which affects the revenue of your medical practice.
Fraudulent Charges Hurt Your Reputation
Errors in medical billing can occur due to two reasons: honest mistakes or fraudulent charges.
Fraudulent charges can put your medical practice at risk of liability and fines. Recurring incidents of potential fraud will trigger investigations and audits.
News can spread like wildfire in the medical community – and with almost every person utilizing social media, you could damage your medical practice’s reputation among your existing patients and potential patients.
Any medical practice that is charged with fraud will have to pay exorbitant fines, and this will definitely affect revenue. Plus, a fraud investigation makes the medical practice seem unprofessional, and this can drive patients away from your practice.
How Common Are Medical Billing Errors?
Errors in medical billing are actually very common – it is estimated that almost 80 percent of medical bills contain incorrect information. Thus begins the cycle of resubmission to get approval to get paid.
Medical billing errors include incorrect information in:
- Patient’s name
- Date of birth
- Primary insurance provider
- Insurance policyholder’s name
- Relationship of the patient to the policyholder
- Policy number
- Group number
- Diagnosis code
- Procedure code
- Authorization code
- If multiple insurance providers, other insurance information
Medical Practice Management Providers in Pinecrest, Florida
Outsourcing medical billing can greatly reduce errors in your billing, thereby improving your revenues and helping your reputation stay solid. At ProMD Practice Management, we understand how running a medical practice is a full-service operation. We offer comprehensive and streamlined medical billing and collection services to reduce errors by your practice.
Call us now at (844) 236-5488 to schedule a complimentary consultation, or request a consultation online. We want you to be able to focus on treating patients while we focus on growing your bottom line.