Accurate medical billing and coding are vital parts of the entire revenue cycle management. But the cash flow may not be as simple as it seems since each facet of the process should be handled with care. Sometimes the work does not end just by getting the payment posted. There might be certain errors in posting too which might lead to need of refunds processing in medical billing. Professional help regarding the processing of refunds can help healthcare organizations to maximize their revenue inflow.
If not handled well, faulty refunds processing in medical billing can lead to loss of both revenue and reputation for healthcare organizations. Staff members in this industry should be well versed with the intricate details of the topic. This article is aimed to clear the confusion regarding refunds processing by answering the most frequently asked questions.
1.What do you mean by refunds processing in medical billing?
After any medical services are rendered to the patient, the reimbursements are made to the healthcare provider’s account. Due to certain errors, the payment might be in excess. In these cases the insurance network raises an appeal for the refund of the balance amount. Handling these requests and returning the excess money to the payer, whether insurance or patient, is known as refunds processing in medical billing.
2.What are the factors leading to credit balance?
There are several issues that can lead to the piling up of credit balance in the provider’s account. While some are consequences of staff negligence, some might be the outcomes of improper guidance. Here are some common reasons cited by majority stakeholders:
- Incorrect payment posting
- Additional payment from the patient apart from the insurance amount
- Usually it happens in the form of deductibles and co-pays
- In case the patient has two insurance payers, both might have been treated as primary. Hence payment might have been double.
3.What can be the adverse effects of unaddressed refunds processing in medical billing?
One thing to keep in mind is that the concerned healthcare provider is solely responsible for returning the money received in excess. If it is not handled well, it can lead to the following adversities:
- Large sums are lost as legal fees in case the issue is left unaddressed for long.
- The healthcare organization or the independent practitioners might be sued for non-compliance.
- It can also lead to imprisonment following a series of legal battles.
- It can tarnish the reputation of the organization in the eyes of the patients for being irresponsible, which can be pretty difficult to reverse.
4.How should you handle the refund request?
Once the team receives a request for a refund, they should study the details of the claim well enough. This means studying and analyzing the patient account thoroughly to verify the liabilities involved. If the papers are satisfactory, then the team should proceed further with the refund. If they need any other papers, then that should be clearly communicated with the stakeholder to carry on further investigation.
5.What do you do if there is a dispute regarding refunds processing in medical billing?
As mentioned before, if the papers are found to be unsatisfactory for refunds processing, then the payers must provide the required documents as asked by the billing team. If the issue is still not resolved then the team must get in touch with the payer network to file a reverse appeal with the supporting documents. Though they can be reconciled amicably, it can also lead to severe legal battles. Hence the papers must be ready at all times.
6.What are the Government regulations with respect to it?
Any excess amount pending for the Government insurance payer networks should usually be paid within 60 days. The team must prioritize the needs accordingly and work within the required time limit. Though all requests should be handled with equal care, negotiations can be a bit easier with the private networks.
7.How is refunds processing related to the financial health of the healthcare organization?
Periodic review of the financial health of the organization is extremely crucial for the growth and development of the company. The credit balance when left unattended can present a skewed financial picture of the organization. Thus the business decisions regarding the future prospects can get adversely affected. For easier decision making, these refund requests should be resolved within a short span of time.
Most in-house teams are not equipped enough to handle the complicated process of refunds processing in medical billing. In other cases, they spend most of their working hours over A/R analysis and follow ups. If you are facing the similar issue, then you can easily outsource your work to leading revenue cycle management companies. Apart from end to end revenue cycle management, they can take care of your specified refunds processing issue as well.
9.What are the steps taken by the outsourcing RCM companies?
Leading RCM companies have specialized teams to handle all your domain specific needs like refunds processing in medical billing. While they take necessary steps to tackle the situation in a systematic manner, the long term goal is to prevent such a situation in the first place.
- They go through the patient accounts to understand a trend in issues.
- They study the EOB of the individual accounts as well.
- They make use of CPAT credit balance analysts to rectify the errors professionally.
- Any recurring issues found in the process are noted. They are used to rectify the patient accounts to decrease the number of such cases significantly.
This question cannot be answered with a blanket solution. While some healthcare organizations might have only specific concerns regarding their billing and collections, some others might be on the lookout for a competent vendor who can manage the entire process comprehensively. The process to choose the right RCM Company for you depends on your organization specific needs. However, leading and experienced revenue cycle management companies specialize in each aspect of the process and help their clients overcome the issues at hand. Mention your needs to their team and they will chalk out the tailor made customized plan for you.
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