In the intricate realm of healthcare revenue cycle management (RCM), the substantial challenge revolves around handling denied claims. Scarcity of resources, understaffing, and restricted capacity frequently lead to difficulties in resolving denied claims, where an alarming 82% to 90% are considered potentially preventable. RCM teams can optimize time and revenue recovery by employing proactive strategies and leveraging technological solutions to navigate this challenging landscape.
Inadequate resources and understaffing are contributing factors to the complexities in managing denials
Amidst a staggering volume of potentially preventable denials, the pressing question arises: why do so many slip through? Inadequate resources emerge as a significant challenge. Denial management involves a complex process often requiring input beyond the RCM team. Clinicians offer crucial insights into a patient’s needs, yet coordinating information across teams for denial appeals poses challenges. Without claim data analysis tools, tracking denials becomes opaque, leaving staff unaware of impending filing deadlines and resulting in lost appeals.
Beyond staffing hurdles, the financial impact of appeals factors into effective management. Each appeal incurs considerable costs, ranging from $25 for practices to $181 for hospitals. Monitoring claim management success becomes near-impossible without software systems. While manual tracking via spreadsheets or within an electronic medical record (EMR) might seem cost-effective initially, they lead to increased stress, time consumption, and revenue loss. Investing in appropriate tools and technology is essential for successful denial management.
Constrained capacity in handling denials
RCM teams grapple with another set of hurdles stemming from insufficient capacity to effectively handle claims. Timely filing, a crucial aspect, demands constant vigilance to prevent missed deadlines—a silent threat to efficient management. This issue extends beyond denials, posing a significant risk of revenue loss. According to the Council for Affordable Quality Healthcare, manually checking unpaid claim statuses alone consumes an average of 14 minutes per claim. When factoring in additional follow-up tasks, the necessary staff hours escalate significantly.
Over time, this workload accumulates, becoming an unwieldy burden. Given existing staffing shortages, health organizations struggle to allocate adequate time to investigate denial causes, manage appeals, and diligently track unpaid claims. The challenges of limited capacity and the complexities of denial management underscore the necessity for streamlined processes and robust technological solutions to optimize revenue.
Enhancing denials management through optimized analysis and workflow
Improving denials management necessitates a strategic framework focused on refining analysis and workflow. Identifying the root cause stands as the initial stride toward reducing denials, notably with registration/eligibility issues accounting for 22% of claim denials in practices. Harnessing readily available practice information is pivotal in pinpointing necessary adjustments and implementing preventive procedures. Employing software to automate report generation and analyze patterns expedites the otherwise laborious task of manual data compilation, enabling staff to concentrate on more impactful responsibilities.
Efficiency plays a pivotal role in successful denial management, and collaborative team efforts to set priorities streamline workflow, ensuring comprehensive attention to detail. Software platforms integrating productivity dashboards serve as valuable tools, offering a centralized hub to monitor both individual and group progress. This comprehensive approach, merging technology and collaboration, fosters a proactive denials management strategy and optimizes workflow.
Preparing your team for success
In today’s healthcare landscape, characterized by high turnover rates and staffing shortages, it’s crucial to equip teams for success and support new hires by formalizing learning materials and training procedures. This ensures consistent adherence to best practices and provides clear, comprehensive company guidelines. Many RCM leaders cite hiring and training as significant struggles, posing considerable challenges for their organizations. This hurdle is a key reason why an alarming 65% of denied claims remain unaddressed. To tackle this issue, it’s essential to guide new team members on effective denial processing, offering valuable resources like specific denial examples and documented best practices for efficient follow-up. Establishing a structured and thorough onboarding process enables RCM teams to navigate the complexities of denial management more effectively, reduce the impact of staff turnover, and ultimately enhance success rates in claims processing.
Managing denied claims remains a primary concern for RCM leaders. Leveraging software platforms empowers teams to streamline workflow and improve management amid the industry’s unique challenges. This technology facilitates trend analysis for a clearer understanding of revenue loss areas and seamless integration with a company’s EMR, saving not just time but also alleviating the burden of individual denial management and deadline tracking.