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Back to the blogAug 15, 2021

How Medical Billing Errors Negatively Affect a Practice

How Medical Billing Errors Negatively Affect a Practice

Medical billing errors are common. Insurance changes, coding mistakes, and even simple typos can cause payers to deny your claims. Here is how medical billing errors negatively affect your practice, and what you can do to prevent them.

What Are Medical Billing Errors?

Billing payers for your providers’ services is the financial backbone of your medical practice. If your practice submits claims for payment that are incomplete, not timely, or contain any errors, payers may refuse to reimburse you and issue a claim denial. Medical billing errors, even trivial ones, can delay your reimbursement and cost you time and money. Here are five common types of medical billing errors:

    How Do Billing Errors Hurt Your Practice?

    Billing errors hurt your practice’s bottom line. Payers may deny claims that contain errors, have insufficient documentation, or they receive outside of the timely billing window. While you can correct some medical billing errors, like typos or insufficient documentation, the resubmission process delays your reimbursement. Fixing medical billing errors also requires time and attention from your billing staff. When your billing team members focus on correcting past errors, they may not have enough time to properly submit new claims, creating a vicious cycle of denials. Some errors, like late billing, may cause your practice to lose out on revenue altogether.

    Medical billing errors can also reduce patient satisfaction. Payers may notify patients of a claim denial that resulted from an error by your practice, even if your team members are already working to fix the error. Calls from frustrated patients require time and attention from your front desk staff. If your practice does not fix medical billing errors quickly, patients may consider changing doctors to avoid further frustration.

    Finally, if your practice struggles with medical billing errors, you may become a target for audits. The Centers for Medicare and Medicaid Services, as well as private payers, place increased scrutiny on practices with a history of inaccurate billing through fraud-prevention and auditing programs. Complying with audits can be time-consuming, and frequent audits may damage morale.

    How Can You Prevent Medical Billing Errors?

    Your EHR and EPM system can help to prevent medical billing errors. An integrated EHR and EPM system minimizes hand-copying of data, reducing data entry errors. These systems can also lower the risk of typos by pulling nearly all necessary billing information directly from patient records.

    With an EHR and EPM, you can also streamline your billing workflows. Some common tips successful revenue cycle teams do are:

      EHR and EPM systems have tools to help you track your revenue cycle and pinpoint problems. For example, TempDev’s Revenue Cycle Dashboard NextGen EPM Report shows you aggregate and provider-level statistics on claims denials, including denial reasons. With a few clicks, you can see what share of your claims are being denied and why. Armed with this data, you can develop targeted training to help providers and staff prevent medical billing errors. 

      TempDev Can Help You Reduce Medical Billing Errors

      TempDev’s revenue cycle consultants and analysts can help you develop custom reports to identify the most common causes for medical billing errors in your practice. After performing a NextGen Practice Management Assessment, TempDev will work with the client to target their issues and rectify where the problem is occurring. TempDev’s NextGen experts can also help you configure your system to prevent medical billing errors, saving you time and money.

      Call us at 888.TEMP.DEV or contact us to get started preventing medical billing errors.  


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