Reducing Payment Denials

What advice would I give for ways to reduce payment denials? Start simply – but right away – by implementing a simple system such as the following:

Flag all denied charges, making a copy of the related EOBs and placing them in a folder.

Hold staff meetings of the billing and collection personnel twice a month if possible or, at a minimum, once a month. In the meetings review and discuss the denials; why they occurred, and what corrective action needs to be taken to prevent them in the future.

Implement the corrective action by communicating with the individuals who are involved with the process. In most cases this will be the people in attendance at these meetings – but not always. It could also include anyone from front desk personnel to even the physicians. For example, a denial pattern might be identified as stemming from the fact that a particular physician is filling out the patient charge ticket incorrectly.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.