On a busy day in the office, one of your staff members from the billing department is busy making financial statements. Somehow he accidentally filled the wrong numbers in the financial statement and sent it to the further proceeding.
Somehow if it is not resolved on time then it may cause multiple damages to your practice, especially on the finance side. That’s why the payment posting process came in.
Like the above example, there are multiple mistakes that happen in the payment process which leads to loss of revenues every day for the medical service providers.
It is essentially important for every health care service provider to have a management system of payment posting which somehow helps them to get insights of their daily revenue cycle.
It will help you to resolve the issue firsthand before submitting the payment for the Insurance claim.
What Exactly Is the Payment Posting Process In Medical Billing?
In the medical billing process, a payment posting is described as a process in which a financial statement of any healthcare service system is managed.
It will give insight into the financial problems and identifying those financial problems will eventually help the health system to immediately resolve them.
So a payment posting process is very essential for every healthcare service provider to make sure that there is no error in their financial statement and it eventually leads towards a smooth revenue cycle management system.
How Does Payment Posting work?
When any health care service provider receives payment from his payer then it doesn’t mean that everything is alright and he should go for the claim process.
Before the claim submission, you have to go through the payment posting process.
A successfully evaluated payment posting process will enhance the chances of the smooth revenue flow of your practice. Here is the step-by-step process of payment posting.
- First, you have to make sure that you have the data from EOB & ERA and you need to also verify that extracted data matches the actual payment.
- The next time revolves around the valuation of the claim denial ratio and this evaluation process has been done by your medical billing team. You are also responsible for the management and resubmission of those claims after the property assessment.
- For the sake of convenience, you can assign the responsibility to the patient if they are liable in the matter.
- Make sure to give your input at the time of service on prior authorization, co-payment, denial ratio, and co-payment collection and deductibles.
Common Mistakes In Payment Posting Process
The payment posting process is very important for the revenue cycle management system. But many health care service providers at times make a common mistake in the payment posting process.
The following are some of the most common mistakes in the payment posting process: after you successfully identify those problems then you can easily avoid them and make your financial statement crystal clear.
Ineffective Management of Claim Denial Rates
The claim denial rate is very common in the medical billing process and there are multiple articles published about the higher claim denial rates in the medical sector and how it damages the financial stability of the healthcare sector.
There have been many reasons behind a claim denial ratio. It might be due to improper coding practice, any mistakes in the charge entry and not being able to meet the payer deadline.
In order to tackle the higher claimed denial rates. You have to make a proper process for your administration so they can easily find the error before submitting the claim.
Once you find the main reason behind the higher denied rates in your practice then you can easily control it.
Lack of Expertise In your Team members
Every healthcare system usually utilizes its health worker for billing management. So as for the requirement, they usually are not adjusted for this very important task.
There are many ways and due to that reason, the chances of error in the payment posting process are also very high.
It is very important for every health care service provider that they properly invest in the upskilling of their team members so the chances of error can be minimized.
Delaying Payment Posting
If you are delaying in posting your payment then there are chances that you may face days receivable outstanding (DRO). It will also affect the performance of your staff members.
If you are timely posting a payment then your staff member can effectively manage those claims that are the reason for your outstanding account receivable.
Improper Review of Write-offs
You have to review your write-off because there is the possibility of errors in the adjustment and by following this process you can ensure a smooth flow of your revenue cycle management.
When you have full access to the information regarding the account receivable of your practice then you can effectively manage your revenues.
Delays of Secondary Claims
Every practice faces a denied claim then they have the option to submit the secondary claim as soon as possible.
Once you delay in submitting the secondary claim then you will eventually lose your revenues and the ratio of secondary claims is also very high.
Tips To Reduce The Risk of Payment Posting Errors
Here are some tips in which you can minimize the mistakes of the payment posting process in medical billing.
- Effectively monitor the denial management.
- Make a team of professionals who are experts in the payment posting process.
- For effective management of your billing activity, you will need to take a close look at the changing policies.
- Use advanced electronic health record systems that are supposed to make your billing process more advanced and reduce the chances of errors.
Lastly, the payment posting process is very essential in medical billing. And by following all these steps you can minimize the chances of error in this process. If you need help Med- Miles LLC is here for you! We are providing medical billing services for eight years.
Team at Med-Miles handles all your billing worries including denial management, payment posting, payment hunting and patient services So, you can take care of your patients without any payment stress in your mind. For Services call at +1 888-598-9181