Have you submitted your DME claims? If yes, count down begins! 1, 2, 3, and so on. You will also be counting down the days until you receive payment once your DME medical practice submits a claim to the payer. Of course, you must ensure you receive the payment as soon as possible, as delays will cost your hospital or medical institution thousands of dollars. But what causes your payment turnaround time to increase? Or why are there DME billing backlogs?
Account receivables should be cleared in less than 30 days. However, there are times when payments are delayed. There are several reasons why a payer takes so long to make a payment. Some of the reasons are as follows:
- Claim errors,
- Multiple denials, and
- A missed deadline for filing
It is essential to reduce the DME billing backlogs or the time it takes to process accounts payable. Here are some of the strategies that can be opted to minimize the DME billing backlogs:
1. Determine Denial Claims Pattern:
Denials are the leading cause of increased backlogs and aged claims. Every DME billing denial results from a specific reason or an error committed at a particular point. Examples of such errors include DME medical coding errors, failing to understand the terms and conditions of an insurance provider, failing to follow up with patients regarding documentation, and so on.
Identifying patterns in denial claims, mainly if similar errors occur repeatedly, can be beneficial. After you’ve identified them, you can take preventative measures, such as improving your software or retraining your DME billing staff, to avoid them in the future.
2. Examining Patients’ Overall Records:
It is advisable to check a patient’s insurance details and overall health record from the moment he or she seeks DME medical care. It will assist you in identifying any recurring claim issue that has previously occurred due to any once-received treatment. Identifying them can reduce the likelihood of experiencing the same at your health facility, resulting in lower backlogs and older claims.
3. Overhauling Software:
In recent years, automation software has significantly improved DME medical billing. DME medical billing, scribing, data entry, and AR department software have all benefited from technological advancements. A DME healthcare provider can reduce backlogs and old aging claims by updating software and automating processes. It will also help you to train your DME medical billing teams to be the best at dealing with such issues.
4. Uncollectible Claims:
It is upsetting to see stale collectible claims on their reports that have no chance of being recovered. For example, if you have a two-year-old claim, cannot bill the patient, and have no grounds to appeal. It is preferable to dismiss such DME claims. However, don’t forget to note why the claim became uncollectable.
5. Track down the Bills That Were Never Sent:
To find the backlog, look for DME bills that were never sent in the first place. Check your “Medicare return & billing editor queues provider reports” for such unsent bills. Only tracking down such DME bills won’t serve any purpose. Instead, identify the root causes behind such mistakes or ignorance and submit the same to the insurer after cross-verifying all the information and requirements.
Outsource a DME Billing and Coding Company!
Have you tried all of the above strategies and still failed to collect payments on time?
Do you require powerful resources to reduce your DME billing backlogs cost-effectively?
If yes, then you need a professional solution. Outsourcing a DME billing and coding company such as 24/7 Medical Billing Services is always wise to help you deal with backlogs and old aging claims. Their experts will track outstanding receivable balances, investigate denials, and provide periodic reports on pending claims. They will also ensure that the insurance companies receive and file your claims correctly the first time.
Expert DME medical coding audit will create a plan based on your DME business model as they have the necessary skills. They can genuinely assist you in identifying potential points of failure and emphasizing your advantages. Outsourcing your accounts receivable is thus a viable option that should be considered if necessary.