Three Questions to Ask About Counseling Medical Billing

medical billerMedical Billing, for counseling practices, is either a strength and a huge asset that helps to shoot your practice to the next level–or it is a frustrating albatross that could lead to the demise of your practice. There is rarely an in between! The following article looks at important questions to ask your medical billing staff or company about how your receivables are measuring up.

Question Number One: Are you receiving payment for your claims?

Obviously, the point of medical billing is to get paid for your work. But what is reasonable to expect?

A: You are doing well if you receive between 96 to 99 percent of claims, or better said, percentage of money from claims. I make this distinction because if you’re billing for different services, and you’re getting paid on your small claims, but not your high-fee claims, you could potentially have a high percentage of claims paid, but a lower percentage of total money in the door.

A quick note: having 100% of claims paid is always what you’re aiming for–that would be ideal. But in the imperfect system you’re working with (healthcare), be satisfied if you’re receiving 98%.

Consider it a Red Flag is you’re receiving under 95%

If you’re at 94%, don’t panic, but its time to look closely at your reports, and determine where you’re losing 6%, so that you can make changes.

If you are under 90%, now it’s time to hit the panic button. It is time to seriously evaluate what’s going wrong.

The thing is, many practices collect less than 90% of what’s owed to them, and don’t even know it because they don’t have reliable reporting. Being able to run reports, to determine where your money stands, is a must—even for a small practice.

This leads us into question number two:

Question Two: Do you know what has been paid or not paid, and why?

Counselor Medical Billing: Read On