3 ways labs can boost performance with revenue cycle management

To thrive in today’s constantly evolving healthcare ecosystem, labs must address several critical revenue cycle management challenges. Manual claims submissions are complex and time-consuming. ICD-10 codes were not set with labs in mind. As a result, coding errors are extremely common. These lead to long delays in accounts receivable (A/R), increased denial rates and higher patient bad debt rates. This, in turn, causes even more manual work as billers and claims specialists are forced to find errors and resubmit claims to increase reimbursements.

It doesn’t have to be this way. Facilities that embrace laboratory-specific revenue cycle management software can automate the claims management process, capture more revenue and reduce the burden on billers. Let’s explore a few of the ways to boost performance by leveraging revenue cycle management technology.

1. Reduce bad debt collections by eliminating coding errors

The healthcare industry has seen a significant increase in claims denials in recent years, but research indicates that most of those denials are avoidable. Coding errors and inaccurate claims submissions are a large contributor to claims denials, and submitting complete, accurate claims the first time is a proven way to reduce denials. Labs that use revenue cycle management apps to automate this process can significantly increase their clean claims rate, reduce denials and accelerate A/R days.

2. Automate insurance discovery, claims edits and remits

When claims errors do occur, editing and resubmitting claims is key to ensuring that you receive the reimbursements that you’re owed. However, manually reworking claims, tracking down incomplete patient information and identifying all applicable payer information is incredibly time-consuming. This is made even more challenging when labs work indirectly with patients through referring partners. With automated coverage discovery, claim edits and resubmissions, your billing staff can focus on higher-ROI tasks without sacrificing the revenue from denied claims.

3. Track and analyze revenue cycle trends

Do you have a clear picture of your lab’s performance and trends around the services you provide? With accurate tracking and reporting capabilities, you can dig into trends that impact key budget decisions. With this data, you’ll see which tests and services your referring partners most frequently request. That information, in turn, will empower you to make better-informed decisions around budgeting for equipment and supplies.

An accurate view of revenue cycle trends will also help you better understand where and when claims errors occur. You can then take the steps to eliminate errors to increase coding accuracy, accelerate reimbursements and reduce patient bad debt.

At Inovalon, we are experts in RCM for labs. We help labs and diagnostic facilities improve business office efficiency, track key metrics, accelerate A/R days and decrease debt collection rates. To find out how we can help your lab thrive, schedule a conversation with one of our experts today.