What Is Claim Adjudication and How Does It Impact Your Practice?
As a healthcare provider, there are obviously plenty of different challenges you’ll end up facing that go beyond simply just treating your patients – mostly on the administrative side, which can be a bit challenging if you’re only running a small team of mostly physicians and no real dedicated team to handle your medical billing and coding.
Specifically, the claim adjudication process, which plays a pretty vital role in determining how financially healthy your practice is, can be particularly complicated if you’re trying to handle it on your own.
So, throughout this article, we’re going to be taking a closer look into what claim adjudication actually entails – covering things like the influence it can have on your practice and why understanding this process is essential if you want to stay sustainable.
Understanding Claim Adjudication
Put simply, claim adjudication is basically just a process where your patient’s insurance payers take a look at whether the medical claims that your practice has submitted to them are valid or not and can actually be eligible for reimbursement of medical claims submitted by healthcare providers.
Naturally, verifying the accuracy of the information you’ve provided can end up being a pretty long-winded process with a bunch of different steps involved – whether it’s determining coverage eligibility or calculating the appropriate payment amount to reimburse your practice – so you want it to be over and done with as soon as possible in order to get paid on time.
So, as touched on, the claims adjudication process typically begins once your practice has submitted a medical claim to the health insurance company, and this will include information about all of the various services rendered by your physicians – such as diagnoses, procedures performed, and any other costs that might be associated.
Upon receiving the claim, the payer will then start its adjudication process, which involves a fairly thorough review by either an automated system or people known as claim examiners.
The Impact on Your Small Medical Practice
It goes without saying that depending on how smoothly the claims adjudication process goes, there can be some pretty significant implications for your medical practice, both financially and in terms of how you’re able to operate.
Let’s walk through some of the main ways in which it can impact your practice:
Denied Claims and Rejections
These tend to offer for a few different reasons, from incomplete documentation to lack of medical necessity, so appealing a denied claim can obviously consume valuable time and resources your practice might already be lacking.
Streamlining the claims adjudication process is crucial for improving the overall efficiency of your practice. This includes ensuring accurate documentation, proper coding, and a prompt claim submission process so you can minimize the risk of rejections or denials.
Partnering With a Third-Party Medical Billing and Coding Company
Rather than handling the claim adjudication by yourself – possibly facing a denied claim and, therefore, a significant blow to your small practice’s cash flow – let’s explore the impact that partnering with a third-party medical billing and coding service such as PMN can have on your long-term stability:
Expertise and Experience
PMN brings over 20 years of medical billing and coding expertise to the table, with a solid understanding of some of the nuances involved with payer requirements – as well as coding guidelines and regulatory compliance.
One of the main benefits of outsourcing your medical billing and coding tasks to a third-party provider is how much time you’re able to free up now that you’ve got a dedicated team of professionals solely focused on managing your claim adjudication process for you. As a result, you’re able to allocate your potentially fairly limited resources a lot more efficiently so you can focus on delivering quality patient care.
If you’d like to learn more about how PMN is able to streamline your medical practice’s overall claim adjudication process, make sure you schedule a chat with one of the supportive members of staff in their team by giving them a call at (949) 215-5055.
However, pretty much any way you try to mitigate some of the challenges that come with claim adjudication is going to take a knock on your healthcare organization’s bank account.
So, it might be worth booking an in-person chat and visiting their office in Laguna Hills, Orange County, California, for a more in-depth conversation about what PMN can do for you – ensuring that you’re absolutely positive that outsourcing is the right decision for your practice.
What Is The Payer’s Initial Automated Review?
Generally speaking, the payer’s initial automated review (during the claims adjudication process) is actually one of the most crucial steps that healthcare insurance companies conduct once they’ve received a medical claim from your healthcare provider. During this stage, the payer basically just uses some kind of automated system or algorithm to ensure that the claim that’s been sent is definitely valid and is eligible to be reimbursed.
What Strategies Can I Implement To Improve Claim Adjudication Outcomes?
Outside of the more straightforward solutions that third-party medical billing and coding services can provide your practice, some of the more effective strategies for success include things like investing in new technology solutions, keeping your staff trained and educated, and emphasizing to them why documentation and coding accuracy are so important. Aside from that, keeping a collaborative relationship with your insurance payers never hurts to expedite the overall process too.