Home » Is it Risky to have Credit Balances in Medical Billing?
In medical practice, credit balances occur when improper payments or adjustments are made that exceed the related posted charges. Physicians and practices often face this problem due to the complexity of billing and payment processes. Le’s see Is it Risky to have Credit Balances in Medical Billing.
Credit balances are not really an asset for practice since they belong to the patient or the state. In fact, they expose the practice to several business and financial risks. This is why credit balances should be addressed with an effective Accounts Receivable (A/R) solution.
If you have credit balances on your books for too long, you are burdened with the responsibility of resolving the balance, audits and other costly risks, such as
(i) Billing fraud
(ii) Misstated profits
(iii) Medicare penalties
(iv) Wasted time and processing costs
(v) Lost billing opportunities
(vi) Loss of goodwill with patients
Most credit balances do not reflect what is actually owed to payers by providers. Credit balances often arise from the incorrect posting of allowances, duplicate payments, and overpayments by patients and payers, and miss-postings.
A good revenue cycle management service can deliver help your practice eliminates credit balances and create a strategy for managing them in the future as well. This can be accomplished with –
(i) Regular account balance audits
(ii) Timely refunds to the rightful owner
(iii) Managing Government and commercial payer timelines
(iv) Following up with payers to check if the payment can be offset from future payments depending upon the case
(v) Managing disputes and appeals
This will give you a basic idea of is it risky to have credit balances in medical billing. learn more or to take advantage of one of the top medical billing companies and family medicine and specialty billing services, such as neurosurgery medical billing services, call Emerald Health LLC in Massachusetts at 855-650-9906 Today.