Payment Posting – Impact on AR
AR inflation is considered as one of the main causes for revenue loss in the US healthcare industry. There are several factors that contribute to this AR inflation, which if not scrutinized properly, can make the situation worse. One best example is payment posting that greatly impacts the AR, if not reviewed on time. In addition to showing immense care on medical billing and collections, Providers should also focus on timely payment posting. Therefore, prudent AR follow-up and healthcare denial management is highly essential for a healthcare facility or Provider’s success. Let us take a look at how improper payment posting can result in AR inflation and also arrive at a possible solution:
Payment Posting: Gone are the times when Payers sent out payment explanations to Providers in the form of paper EOBs (Explanation of Benefits). Nowadays, Payers deliver the payments electronically to healthcare Providers and Facilities using EFTs (Electronic Funds Transfer). Also, the payment explanations are sent in the form of ERAs (Electronic Remittance Advice). Healthcare facilities and providers who struggle with payment posting can consider outsourcing medical billing to have their payments posted on time.
· The advent of ERAs and EFTs has simplified the work of Providers as well as Payers.
· With automated payment posting, Providers and healthcare Facilities can save time and money while devoting more time to the core medical billing and collections.
· Manual errors can be widely avoided.
· The turnaround time for payment processing is faster.
· Annually, 2.5 billion pieces of paper can be saved approximately.
· Savings of $ 18,600 per Provider in administration costs with ERAs compared to EOBs
Impact of Improper Payment Posting:
· Once payments are received, the medical billing and collections staff’s prime duty is to post them on to the billing system. The patient balance calculated after this payment posting, will either be sent out as statements to patients or taken as a write-off.
· If the medical billing and collections staff delay or fail in depositing checks to the bank or scan EOBs on to the billing system, then the AR would look artificially inflated in the system. As a result, the revenue generation of the healthcare Facility or Providers gets affected badly.
· To avoid a negative balance appearing in the billing system, the medical billing staff must post payments on a timely manner. Frequent reviews and audits should be conducted as well.
· Healthcare Facilities and Providers who do not have adept medical billing staff in-house can outsource medical billing and collections to an experienced medical billing company.
MGSI is one such company that can handle payment posting while providing unsurpassed AR follow-up and healthcare denial management services to its clients.
MGSI is a reputed outsourced medical billing company that has more than 20 years of experience in the healthcare space. Based in Florida, MGSI is a national billing company that can do your payment posting on time for uninterrupted revenue generation. To learn more details, log on to www.mgsionline.com
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