A key attribute of a successful dental practice is cash flow. Patients can keep coming in all day but if your insurance claims are delayed or denied, it can put your financial well-being at risk. If you have a busy practice and an irregular cash flow, it means you are working extra hard and not maximizing your true income.
Lost revenue due to declining reimbursements can negatively affect your bottom line to the extent that you look for ways to downsize or cut operating costs elsewhere. A practice management system with the right electronic insurance claim feature can greatly help your revenue collection by reducing denial of claims and flagging underpayments.
First Pass Resolution Rate
Every time a claim is denied, it costs your practice anywhere from $25 – $30 even if it is eventually accepted. So it is very important to make sure claims are approved the first time around. A good medical billing system will help your staff reduce common errors which trigger denials, improving your resolution rate.
Practices have so many individual payer contracts that it can be difficult to keep track of them all. Even worse, it can be daunting to go through mountains of paperwork to check if you are being underpaid by certain payers. Many practice management systems keep track of billing amounts and payer contracts and alert you if the numbers don’t match. After all, it is not good business to receive only a part of the amounts you are entitled to receive.
Faster processing and analytics
Filing claims electronically helps reduce the time spent by your employees in coding claims and verifying patient data. Claims get processed faster and you can get paid in weeks where it used to take months. It also eliminates the chances of files being misplaced or lost. No paperwork means no need to spend money on postage, paper and printing ink.
It can be hard to address cash flow problems when you don’t know what areas need improvement. Many practice management systems with electronic insurance claims features will allow you to generate periodic reports so you can identify ways to speed up payment cycles.
Declining reimbursements and challenges with patient collections can adversely affect your dental practice. It is essential to have the right electronic insurance claims solution in place to make sure you get paid in full and on time, so you can stop worrying about the financial stability of your clinic and spend more time on improving patient outcomes.
Improve insurance claims acceptance rate with Dovetail
Dovetail’s electronic insurance claims solution enables dental offices to communicate directly with insurance companies to receive patient plan benefits. With this feature, your dental practice is able to check eligibility and benefit information while your patient is still in the office, helping improve your practice’s efficiency and patient satisfaction. For more information on Dovetail’s electronic insurance claims solution, click here.