What are the best strategies for reducing revenue cycle write-offs?

1 Review your contracts

One of the main sources of write-offs is contractual adjustments, which are the differences between the amount billed and the amount allowed by the payer contract. To reduce these write-offs, you need to review your contracts regularly and ensure that they are accurate, up-to-date, and aligned with your services and costs. You also need to monitor the payer performance and compliance with the contract terms, such as timely payments, denial rates, and reimbursement levels. If you find any discrepancies or issues, you should negotiate with the payer to resolve them and avoid future write-offs.

2 Improve your billing process

Another common cause of write-offs is billing errors, which can lead to denials, disputes, or delays in payment. To improve your billing process, you need to implement quality control measures, such as verifying patient and insurance information, coding accurately, following payer guidelines, and submitting claims promptly. You also need to train your staff on the best practices and standards for billing and coding, and provide them with the tools and resources they need to perform their tasks efficiently and effectively. Additionally, you should leverage technology, such as automation, analytics, and software, to streamline your billing process and reduce errors.

3 Enhance your collections efforts

Sometimes, write-offs are unavoidable, especially when dealing with bad debts or unresponsive customers. However, you can still enhance your collections efforts and recover as much revenue as possible before writing off the accounts. To do this, you need to establish a clear and consistent collections policy, and communicate it to your customers and staff. You also need to follow up with your customers regularly and promptly, and offer them various payment options and incentives, such as discounts, plans, or reminders. Furthermore, you should track and measure your collections performance, and identify and address any issues or gaps that may affect your recovery rate.

4 Prevent fraud and abuse

Fraud and abuse are another potential source of write-offs, as they can result in overpayments, underpayments, or penalties. Fraud and abuse can occur at any stage of the revenue cycle, from registration to payment, and involve various parties, such as patients, providers, or payers. To prevent fraud and abuse, you need to implement internal controls, such as audits, checks, and balances, to detect and prevent any irregularities or discrepancies in your transactions. You also need to educate your staff and customers on the risks and consequences of fraud and abuse, and encourage them to report any suspicious or unethical behavior. Moreover, you should comply with all the laws and regulations that govern your industry and revenue cycle.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?