The collection rate has always been one of the most important metrics for medical practice success. This is why physicians and their medical billing companies always prioritize it for the sake of the practice’s financial health. And as for now, the way healthcare is advancing and the collection rate has become even more important!
Nowadays, patients tend to pay more for their better care and health, whereas the insurers now tend to look for small errors in order to deny claims, therefore outsourcing medical billing and medical transcription services from a well-known medical billing company, such as UControl Billing has become a necessity! Such medical billing firms closely monitor collection in order to spot and minimize trending errors.
This is why medical practices should highly consider outsourcing medical billing as well as medical transcription services.
What Is Net Collection Rate?
Before discussing the role of medical billing companies in the increment of net collection rate, let’s first see what the net collection rate of medical practice is? We can simply define it as a performance measuring system that measures the effectiveness of practice in collecting legitimate reimbursements for the services that they provide. If there are any sort of deficiencies in this process, the rate of the net collection will highlight them.
A practice has a low net collection rate when it struggles to collect revenue because of the following:
- Late filings
- Bad debt
- Claim underpayments
- Coding errors
Having a good net collection rate is important as it directly connects with the revenue flow of practice, so monitoring it is essential. Most practices measure it quarterly and get a preview of how their practice’s financial health and productivity are going on! If a practice faces a low net collection rate, it should be known that it requires immediate treatment, and it should be its first priority.
Such practices should consider outsourcing medical billing and medical transcription services. Let’s now see how outsourcing helps a medical practice that has a continual problem in gathering revenue.
How Can Medical Billing Company Increase Your Collection Rates?
A medical billing company is capable of handling the billing and administrative work of medical practice. This is why when a practice outsources such services, and their physicians get more efficient as they get the time to focus more on patient care. An experienced medical billing is more organized and capable than a practice staff as it has expert medical billers and coders.
These medical billers and coders provide medical billing and medical transcription services that help to decrease errors and mistakes. In addition, it also improves patient and employees satisfaction. The main benefit of medical billing and medical transcription that can not be denied at any cost is that it increases the collection rates of a practice!
Correct medical billing and coding are very crucial in order to collect more revenue for a medical practice. Outsourcing from an expert medical billing company will maximize collections and will minimize the claim denials that may cause a significant amount of money.
The success of a medical practice heavily depends upon the success of its medical billing process. The medical practice’s top priority might be patient care, but still, a medical practice is a business that requires money to survive.
There is no doubt that the medical billing process and medical transcription services are complicated and prone to mistakes and errors. Coding and transcription errors, as well as processing delays, are the reasons behind claim denials. Dealing with insurance companies is essential, and medical practice should track unpaid claims to avoid denials and rejections.
In order to manage these tasks, your medical staff has to compromise on patient care, and this is why outsourcing from medical billing company can be the best solution. When you outsource, all time-consuming tasks will be performed by their staff, and then your own staff can take care of patients and other such tasks.
A professional and experienced medical billing company, like UControl Billing, tends to manage all claim denials, rejections, and appeals. Such companies use their experience and knowledgeable medical billing experts in order to develop and implement the perfect billing and collection strategies.
Outsourcing helps in:
- Payment tracking
- Minimize outstanding Account Receivables (AR)
- Reduce denials
- Revenue reporting
- Optimize collection results.
- Financial reports.
- Streamlining your entire collection process
- Following up on unpaid insurance claims
- Tracking past due bills
- Identify fallen behind patients
- Automating late fees
An experienced medical billing company will manage all the tasks by providing the best billing, coding, and medical transcription services.
Follow The Tips given Below to Improve The Net Collection Rate Of The Medical Practice
The strategies that can be used to improve the net collection rate of a medical practice depend highly on the specific issues that are faced by the practice.
The basic improvements include:
- Ensuring that your front desk staff know about Co-pays
- Ensuring that patients understand the payment policies
Here are some other strategies for improving the net collection rate of medical practice:
Implementation Of Front-End Point-Of-Service Collections
The simplest way to improve collection is to get 100% of copayments and deductibles when providing the service to the patient. This implies that all collections are collected before the patient’s discharge date. By doing so, no one can walk out of practice without paying their outstanding dues, which means that there will be no hassles afterward for the practice and the patients.
In order to improve this strategy, your practice can set up a reminder that will remind the patient about their dues as well as appointments. This means that if the patient is not ready to pay at the time of the service, they can reschedule the appointment or change the payment method.
Provide Different Payment Options To Patients
Although in the past it was efficient to mail out the billing statement to the patient so that they would write the check in order to pay, now this method has been outdated as well as become inefficient. The reason behind this is that now patients and consumers have been in the practice of paying for services in multiple ways, including an online portal a mobile app with the help of credit/debit cards. In some cases, the patient is only able to pay off their medical bill for the services via an installment plan. For such patients having different options to pay is helpful, and also then they are more likely to pay. If they choose the method that suits them, then they will pay their bills as soon as possible!
Effectively Educate Patients
In most cases, the patient does not know about the ways in which a medical practice collects payments from the insurers or other payers. They sometimes do not know the importance of knowing their financial duties while getting medical services. In order to educate your patients and clear confusion, provide them with a reference sheet or a brochure that has all the details of their responsibilities as well as roles in the process of payment.
In addition to that, make sure that someone from your staff that has expertise in financial issues is there to answer the patient’s questions regarding payments and claims.
Calculate The Ratio Of Net Collection Consistently
In order to get the desirable and correct net collection rate, ensure that your healthcare practice calculates it regularly. Although the rate of the net collection can be evaluated in different intervals, it should be noted that the more extensive the time period will be, the more data will be needed for correctly assessing the performance of your facility. It is observed that when the rate of net collection is calculated after every 90 days for a year, it will give out the correct average rate. Outsourcing from a medical billing company ensures that the assessment of your practice performance is done in a timely manner!
Track The Rates Of Other Medical Billings
There is no doubt that the rate of the net collection is the essential metric of collections of your medical practice, yet the rates other medical billing are also crucial in order to understand the overall effectiveness and success of practice; keep on tracking the net collection rate as well as other billing rates. By doing so, you will be preparing your medical center to fight and handle all challenges related to the revenue cycle.
Outsourcing From A Medical Billing Company
Outsourcing from a third-party company can increase the collection rate of medical practice as they provide the best medical billing, medical coding, and medical transcription services that ensure that there are no errors or other hurdles in the collection process of medical practice. If you are looking for the best medical billing company in the US, visit UControl Billing!
This medical billing company has years of experience in providing medical billing and medical transcription services. In addition, their experts know that every practice is unique, and therefore they require a unique solution that will not only eradicate all the challenges but also will align with the long-term goals of the practice. To ensure this, the experts of UControl Billing work together with their clients. They also provide them with the best set of medical billing and coding services and solutions that meet their specific needs and requirements. With this medical billing partner, your practice would be able to deliver the best care possible.
To find out what they can do for your practice’s net collection rate at the most affordable price, visit their website now. You can also contact their customer service operators in order to get a free estimation!
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