Is the continuous revenue leakage affecting your laboratory business negatively? You should implement advanced laboratory billing solutions to sustain the growth of your business by preventing revenue loss.
It’s a fact that most healthcare practices witness fewer revenue collections as compared to often what they are owed. Moreover, it has been observed that independent laboratory practices are currently missing the opportunity to gain 30% potential revenue.
The main reason behind the revenue loss is an inefficient billing and collection procedure. Which results in a high percentage of claim denials/rejections. There is a 5-7% loss in revenue because 50% of denials are never worked.
A high claims denial rate can lead to the revenue being locked in accounts receivable. Which ultimate hinders the revenue collections and healthcare providers have to face financial challenges such as: cash flow disruption. Therefore, you should always look for innovative solutions to increase the financial stability of your practice.
Advanced lab billing solutions can help you to sustain your reputation in this highly competitive market. Moreover, you can also keep pace with the ever-evolving healthcare industry.
The reliable laboratory billing solutions provide effective management methodologies for the welfare of your lab revenue cycle management services. Eventually, it improves the practitioner’s cash flow and ensures the financial stability of their organization, this has been proved in other medical practices like urgent care centers, where having an up to date revenue cycle management system has been of great help for the industry in general, Want to know more? Click here
Reasons For Revenue Leakage
Before diving into further discussion, it is crucial to identify the root causes of revenue leakage. Because you can’t fix any issue until you have complete knowledge about the reasons for that particular problem. Here are the following major factors that cause revenue loss.
- The complex laboratory billing and coding rules, regulatory changes, and fast-paced industrial developments.
- Failure to keep pace with the industry changes.
- Unique healthcare revenue collection plans.
- An outdated or manual billing system that slows down the overall payment collection procedure.
- Lack of control over the information tracking system damages the ability of lab practitioners to monitor patient’s invoices.
- Inefficient claims management.
- Nom-comprehensive medical bills.
- Unclear payment timeframes.
- Complicated payment options.
How to Avoid Revenue Loss?
1. Automate Lab Billing Services
Excessive workload and time-consuming tasks can impact your practice significantly in a negative way.
Your lab billing productivity will improve drastically if you would automate time-consuming tasks i.e. individual claims filing, payment reminders, coding updates, and revenue cycle management services.
Automatic laboratory billing solutions would help you to execute your administrative tasks and streamline billing services. It will also help you save time and efforts from excessive administrative tasks and focus on revenue impacting solutions
2. Reduce Billing Errors
Are you dealing with an increased number of claim denials and rejections? Certainly, these are the two major factors that impact the revenue collection management process negatively. If you want to ensure the successful business growth of your lab practice then strive to eliminate lab billing and coding errors.
If any erroneous information flows through the laboratory billing system then it causes claim denials. It holds insurance payers back from paying the worth of your services.
However, a state of art billing solution i.e outsourcing lab medical billing services helps you to avoid these mistakes. And further, reduce the chance of encountering claim denials and rejections.
Outsourced lab billing experts are highly trained and have in-depth industry knowledge. On the basis of their extensive experience, they help you to prevent payment delays and improve your cash flow.
As a result, you can experience improved workflow. Most importantly, accurate lab billing and coding can help you leverage data analytics to drive beneficial results.
In addition to this, you get access to certified medical coders. They save your healthcare facility from financial as well as legal problems. They ensure the accurate translation of diseases and medical services into universal medical alphanumeric codes.
In this way, they can save your medical practice from fraudulent coding practices i.e. upcoding, unbundling, undercoding etc.
So, if your lab business is struggling with a high rate of claim denials, then you should immediately step towards joining hands with reliable lab billing service providers.
3. Regular Claims Follow-up
The smart laboratory billing solutions i.e. collaboration with RCM companies, help lab technicians in recovering their uncollected payments from the insurance companies. Outsourced lab billing specialists track denied claims to appeal them after proper rectification. Which reduces the accounts receivables.
In addition to this, they stay in touch with the payers to expedite the reimbursements for the recently submitted medical claims. So, by collecting overdue payments and maximum revenue, off-shore billing experts help healthcare practitioners to run their lab business smoothly and successfully.
4. Regular Reporting
Lack of transparency is one of the leading challenges for healthcare administrative tasks. However, by adopting the most reliable laboratory billing solutions, if you hire a reliable billing company. Then you get timely analytical reports to get a better idea of what’s going on in your revenue cycle management.
A professional laboratory billing company provides regular analytical reports, access to EHR and lab billing software. So you can monitor every aspect of your revenue collections management services. Having said that, you can get clear vision and analytics reporting in real-time.
These factors address the meaning that you can surely improve the efficiency and productivity of your business operation through innovative billing solutions. You can monitor customer requirements, the progress of revenue collection management and business analytics.
Moreover, such solutions enable you to catch any loophole in the billing and coding system. That can later result in any financial inconvenience. So by getting timely information about potential errors, you can actively respond to the problems to rectify them.
It will not only streamline the revenue collections management but also enable you to stand strong against temporary financial issues.
Are you searching for the best lab billing outsourcing companies? Then get in touch with Laboratory Billings. Because it is the most suitable option for your practice. We provide customized laboratory billing solutions to drive optimized revenue for your business. Check this to learn more about our services.