Incorrect medical billing and coding can lead to a number of serious issues for medical billing companies, from lost revenue to penalties from government agencies.
Repeated errors can also cost your medical billing company clients. And yet it’s estimated that 80% of US medical bills contain errors.
If you’re part of a medical billing company that is looking for ways to avoid errors, increase customer satisfaction, and drive more revenue, you’ve come to the right place!
This article will show you how to avoid common medical billing and coding errors through a series of 10 tips compiled by our in-house experts.
10 Tips for Medical Billing Companies to Avoid Medical Billing & Coding Errors
Here are our ten top tips for avoiding errors in medical billing and coding. No two businesses are the same, which means that you’ll have to experiment to see what makes the biggest impact on your medical billing company’s efficiency.
1. Focus More on Rejected or Denied Claims
Medical billing companies should pay special attention to rejected or denied claims, as preventing the rejections in the first place is a great way to achieve optimal reimbursement from insurers.
There are many factors which can lead to a claim being rejected or denied, but focusing on accuracy and precision in medical coding and billing should help to avoid most common errors.
Take the time to review clear documentation, including how to use procedure codes properly, and understand how medical necessity is determined by insurers and CMS guidelines. Going the extra mile and working with your clients to prevent future claim denials will save time and money in the long run.
2. Use Real-Time Electronic Claim Submission
Submitting medical claims electronically can cut down on medical billing and coding errors and save medical providers countless hours.
Gone are the days of waiting for claims to be manually checked and verified, as this all happens now in real-time with electronic claim submission.
This is a major perk that medical teams and medical office managers will appreciate, as it saves time for everyone involved!
Furthermore, electronic claim submission not only makes things more efficient, but also less prone to common billing mistakes—the more you can remove manual data entry from your workflow, the fewer chances there are for typos and other errors.
3. Employ Claim-Tracking and Follow-Up Tools
Medical billing companies are constantly under pressure to ensure medical claims are processed quickly and accurately.
With the ever-changing medical billing and coding rules, medical staff have their hands full managing medical bills and it’s easy for errors or missed information to slip through.
However, medical billers can stay one step ahead of errors by taking advantage of claim-tracking and follow-up tools.
These tools provide extra checks and balances that help identify broken rules, coding errors, false duplicates, incomplete records, and more to keep medical bills accurate.
By using these tools, medical billing companies can avoid mistakes that could lead to delays in insurance payments or reimbursement denials.
Not only will this save money long term by ensuring medical bills are accurate from the start, but it also shows a dedication to customer service that is sure to stand out.
4. Add a Built-In Clearinghouse for Code and Claim Scrubbing
Professional medical billing companies understand the importance of avoiding costly medical billing and coding errors.
By using a practice management software that has a built-in clearinghouse for code scrubbing with claim submission, organizations can ensure the accuracy of the data submitted to insurance providers.
Missteps or errors with patient data can easily be flagged before submission and corrected, ultimately saving professional medical billing companies time and money.
Also, using a built-in clearinghouse—especially one with a reliably high first-pass acceptance rate—will help your organization stay compliant with changing regulatory standards, keeping your reputation intact with your clients year after year.
5. Find Revenue Management Tools to Help With a Biller’s Daily Workflow
Using the right revenue management tools can make a world of difference for medical billing companies, who are responsible for processing large amounts of critical financial data.
These applications can be used to stay updated with latest regulations and codes that constantly change in the healthcare industry, helping billers avoid costly medical billing and coding errors.
Additionally, these tools can automate repetitive tasks associated with daily workflow, freeing up resources and allowing your staff more time to focus on core business objectives without sacrificing the accuracy of data entry.
With the right system in place, managing cash flow issues to reduce losses becomes easier, leading to a much smoother accounts receivable process.
6. Have a Designated Medical Billing and Coding Specialist on Staff
Medical billing and coding specialists play a vital role for medical billing companies. With their extensive training and expertise, they can help ensure that claims are coded correctly and efficiently.
Operating without this expertise could lead to expensive mistakes and unhappy customers. Having a designated specialist on staff reduces the risk of costly errors that can arise from incorrect coding, such as duplicated procedures or misapplied modifiers.
With an experienced specialist on staff, companies can quickly identify incorrect coding, flag discrepancies in patient data, and ensure timely and accurate reimbursement for doctors. This creates a smoother and more efficient process for the entire company.
Overall, having a medical billing and coding specialist on staff makes sense for any medical billing company looking to ensure quality outcomes and satisfied clients.
7. Verify All Claims for Accuracy Before Submission
By verifying all claims before submitting them, medical billing companies can help prevent lost or delayed revenue, incorrect patient data, and other risks associated with mistakes in the billing process.
Verifying claims also helps ensure compliance with government regulations and insurance standards of care. You should also verify claim control and task management, ensuring tasks are based on the line-item status of claims to prioritize your workflow and get reimbursed quickly.
8. Use an Electronic Health Record (EHR) to Reduce Errors
With the increasing complexity of medical coding, billing errors are becoming more frequent.
EHR software can help to avoid these errors by streamlining the flow of information and improving visibility into workflows between billing companies and healthcare providers.
By providing access to all relevant patient information in one place, an EHR can also reduce turnaround times on deadlines and boost accuracy in reimbursement claims, leading to better overall outcomes for everyone involved.
9. Process Claims in a Timely Manner
Processing medical claims in a timely manner is essential to the success of any medical billing company.
By handling claims quickly, billing companies can reduce the chances for claims to be misplaced or otherwise forgotten about.
It also reduces follow-up communications between your billing office and a healthcare provider who wants to know when their reimbursement is coming through.
And, of course, it helps with your overall cash flow to keep things moving and avoid unnecessary delays.
10. Regularly Audit Your Billing Procedures to Ensure Accuracy
Medical billing and coding errors can often be costly, both monetarily and in terms of patient satisfaction.
Avoiding these errors is easier said than done, especially as healthcare technology continues to evolve.
Fortunately, there’s a way to steer clear of mistakes: regularly auditing procedures.
By auditing your medical billing processes on a regular basis, your billing company can ensure that your system functions are up-to-date and your codes are accurate.
In the long run, this simple check can make a world of difference in the accuracy of invoices and payments received by patients.
This in turn will help keep healthcare providers satisfied with your services, which will help your medical billing company to grow.
How CMD Helps Medical Billing Companies Reduce Coding Errors
CollaborateMD makes it easy to reduce billing and coding errors by providing an all-in-one platform that bridges clinical and financial workflows.
Our built-in clearinghouse helps to improve claim accuracy and accelerate cash flow with thousands of built-in medical billing and coding edits.
And with over 125 standard and customizable reports available, you can gain valuable insight that will help you grow your business faster.
Whether you’re an established billing company or just starting out, our services can help you to drive more revenue and attract more business.
And unlike many revenue management tools, CollaborateMD is designed with a biller’s daily workflow in mind.
Ready to see how CMD can help your medical billing company? Schedule your customized demo today!