When we define the factors that are crucial to running a successful healthcare organization, revenue cycle management is at the top. The undeniable fact for healthcare providers is that there is nothing that can be prioritized over providing quality patient care. Healthcare facilities primarily work to fulfill the expectations of patients in every manner possible.
However, it is not possible to achieve quality patient care if the practice is not profitable. It requires a lot of effort to keep the operations profitable in a scenario where you have other priorities like saving and taking care of lives.
In the world of medical billing and revenue cycle management concepts like payment posting are vital in the entire process.
In this blog, we will learn what exactly payment posting is and why it matters. We will also learn about the steps that can be taken for efficient payment posting in the medical billing process and how an expert billing partner like Eminence RCM ensures a smooth payment posting process.
What is Payment Posting in Medical Billing Process
Payment posting, the initial stage within the revenue cycle, refers to the examination and recording of payments within a medical entity to maintain financial transparency. It involves meticulous recording of received payments and depositing funds after the medical billing process is completed.
The role of payment posting is pivotal in the revenue cycle management and overall billing process. It includes recording payments, depositing funds, and reconciling these numbers. It is very important to manage the efficiency of the payment posting process. This is because it significantly influences other aspects of medical offices. It includes patient satisfaction, operational efficiency, and overall financial performance.
The Following Aspects are Covered in Payment Posting:
Payments received from patients:
The payments got from patients can be in cash, cheques or the service might be covered under the insurance. It has to be made sure that the payments received must be reconciled with each patient’s account.
Insurance Payment Processing :
Insurance payments are received through the following methods:
1. Electronic Remittance Advice (ERA) : In the case of healthcare providers, they receive a high volume of ERAs from insurance providers. By importing the transactions into the practice management system, the ERAs are processed in batches. Each batch must undergo a review process to find out the exceptions.
2. Manual Posting : In manual posting, secure FTPs are used to access Explanation of Benefits (EOBs) or the Electronic Health Record (EHR) and posted to particular patient account.
Denial Posting
To accurately understand the AR accounts, it is crucial to post the claim denials. Insurance payers send back all the claims that are denied with ANSI codes. There are times when payer specific medical billing guidelines are attached to it. It is important to record every denial in the practice management system. In case any denials arise, appropriate actions must be taken.
Efficient Payment Posting Within a Healthcare Facility Include Several Steps
Submission of Claims
Providers submit claims containing service details, costs, and patient information to insurers or payers
Adjudication
Payers review claims, determining revenue based on insurance coverage, contracts, and medical codes, then issue Explanation of Benefits (EOB) or Remittance Advice (ERA).
Receiving Payment Receipt
Providers receive payments from payers, including insurance and patient payments.
Proper Payment Posting
Accurate recording of payment details (amount, date, payer) in the medical billing system.
Reconciliation of Payments
Comparing received payments with billed charges and bank deposits, resolving discrepancies.
Identification of Discrepancies
Identifying coding errors, negotiation issues, or billing mistakes. .
Appeals and Corrections
Filing appeals with payers for denied claims or incorrect payments, providing necessary documentation.
Balancing Accounts and Reporting
Balancing accounts, generating reports for payment trends and financial accuracy.
Provider-Patient Interaction
Sending statements to patients for outstanding balances and explaining payment responsibilities.
Constant Monitoring
Regularly reconciling payments to ensure accuracy and revenue optimization.
For efficient payment posting in the medical billing process, it is necessary to give attention to detail, have knowledge of insurance contracts, and the ability to address discrepancies within proper time.
Accurate Payment Posting Ensures:
Comprehensive Tracking of Finances
Businesses of all kinds need to ensure proper financial tracking and the healthcare sector is no different. When the process of payment posting is carried out properly, providers and organizations can track their financial transactions. As a healthcare provider, it gives a deep understanding of the overall financial health of your healthcare business.
Help to Receive Timely Reimbursement
When your claim processing is prompt, it triggers a seamless flow of funds. This is a result of minimizing delays. There are services in payment posting which includes posting and recognizing claim denials. When you have your payment posting process in place, it helps to receive all the reimbursements on time.
Assist with the Proper Denial Management
Payment posting also assists with finding out any potential denials in the process. This makes it possible to resolve the reason for denial at a very early stage. Managing denials and delayed payments becomes easier when you follow a proper payment posting process.
Prioritize Secondary Payments
While doing payment posting, the secondary claims can be identified and submitted. Once you receive all the payments related to your service provided and accounts are adjusted, the remaining patient responsibility can be billed efficiently.
EOB and ERA Posting
When the process of payment posting is carried out smoothly, it ensures that data from both EOB’s and ERAs match payments. It also provides an effective view of the financial position in healthcare practice.
In conclusion, payment posting plays a pivotal role in ensuring effective revenue cycle management for medical practices. By facilitating better cash flow and enabling the early detection of issues, it allows for prompt resolution of billing discrepancies, thereby ensuring the smooth operation of the entire medical billing process.
The entire medical billing process and payment posting demands time, resources, and updated knowledge of medical billing guidelines which Eminence RCM have. Handover your payment posting to Eminence RCM as they have a proven track record of managing your medical billing process in the best possible way.
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