23 Dec Bundled Medical Billing and its role in Healthcare Practice.
The majority of small practice owners prefer to handle all medical billing and coding on their own. They believe that internalizing the billing and coding processes gives them more control over the revenue generated by their practices. Providers must learn how to thrive with Bundled Medical Billing as the U.S. transitions from charging-for-services to customer-experience-oriented strategies for medical firms. Bundled payments, which can be utilized for urgent, chronic, or primary care, hold clinicians more financially liable than they are under the ‘fee-for-service’ approach for the whole cost of a patient’s treatment and recovery.
It is important to contemplate that bundled medical billing requires advanced levels of technical knowledge to understand telehealth and coding. Providers who handle their billing typically employ a standard set of modifiers, diagnosis codes, and procedure codes. It is a difficult undertaking because payer payment policies and coding guidelines are always changing. Implementing a bundle medical billing technique has many advantages, some of which are covered in this article.
What is bundled medical billing service?
When two or more medical operations are bundled together for reimbursement purposes, they are included under the same Current Procedural Terminology (CPT) code. Given that they are carried out concurrently, the medical procedures included in bundling are regarded as a single service. In this situation, the initial procedure will probably lead to additional procedures.
Putting several medical services under a single billing code is referred to as medical bill bundling or code bundling. A CPT code is a numeric designation of a particular service for which a healthcare provider must be compensated. These codes simplify billing for the patient.
The quantity of bills that must be generated and distributed is reduced via code bundling. Only if they are offered together will services be bundled. One code might be used, for instance, to cover both receiving an MRI and response to therapy for the same ailment.
The purpose of bundled payment also known as the Episode Payment Model (EPM) is to encourage providers to make informed service decisions. Both the healthcare professionals and the patients benefit from this. The services provided to address a medical problem over a specific period constitute an episode of care. There is a predefined target price for each episode of service. Providers are charged the difference if they exceed this predefined threshold. However, they make savings when the final payment is less than the desired price. Even yet, the patient only gets the high-quality care they truly require.
What is the need for Bundled Medical Billing?
A unified payment is paid for each one of the services involved in an episode of treatment, such as a joint replacement or cardiac surgery which is all because of bundled payments. All hospital, ambulatory, and rehabilitative care related to the procedure may be included in the services.
Benefits of Bundle Medical Billing
Bundling is done to cut down on the number of bills that must be sent to the medical payer. The volume of bills that are invoiced and collected is decreased when many treatments are bundled together.
Some of the major benefits are listed down below.
By lowering the number of bills, bundling makes the payment process easier for both insurance carriers and healthcare providers— a single amount and a single bill. The insurance payer is allowed to execute a unified bill and amount as opposed to processing multiple bills for different amounts.
Increase Practice Efficiency
You can concentrate on other things and enhance workflows if you aren’t stressed out by managing to practice billing. A Commonwealth Fund survey discovered that registered nurses and healthcare assistants worked almost 21 hours per week with each physician on administrative duties about health programs.
Giving medical billing services your whole workload can free you more time for patient care and reduce the stress of administrative work. The medical billing service providers have experts on staff who can advise you on proper paperwork, specialty-specific billing, and coding conventions. Even test duplication and error reduction can be accomplished by maintaining organization and streamlining procedures.
Transparency and Accountability
Billers can more easily verify that all complaints are handled promptly when a process is transparent. Practices may then be certain that the insurance companies are paying the right amount for the claims and processing them as soon as they are received.
Accountability in RCM is crucial for the majority of suppliers. Experts in medical billing will communicate medical billing data with you so you can better grasp what’s going on with your account. A comprehensive view of the financial viability of your practice can be obtained from medical billing reports that include the cumulative number of cases submitted, the percentage of clean claims, the percentage of denials and rejections, receivable accounts, month-to-month patient and payer compensation, and others.
Decrease Practice Overhead
It might be difficult to find and keep in-house medical billing employees for a business. Employment compensation, health incentives, and development fees are just a few of the many fixed expenses that come with employment. However, the majority of medical billing businesses base their fees on the overall amount of insurance reimbursements received. With the help of medical billing businesses, code compliancy, reduced denials, and less labor will be assured. Smaller or mid-sized practices that cannot afford to hire a full-time staff with experience in medical billing can benefit from outsourcing medical billing services.
To connect with insurance carriers, whether you are a new practice or a practice adding a doctor, you must undergo an accreditation and enrollment process. If you fail to enroll correctly, this process could take a long time and lead to delays. Companies that provide medical billing services frequently provide solutions to handle this process on your behalf. They are familiar with payer-specific contracting and credentialing processes, which speed up your enrollment and credentialing processes.
The next phase is negotiating with insurers to get the best pricing after correct registration. When negotiating with big insurance companies, it can be a little stressful for smaller clinics and feel like you’re up against Titan. Adopt a medical billing service provider to handle the bargain on your behalf.
Minimizing the Administrative load
It goes without saying that since bundling minimizes the number of bills, the healthcare professional can do his real job i.e. treating the patients. By being more productive with less administrative labor, the doctor may raise his or her Relative Value Unit (RVU) points.
Wrapping it up:
Payers are only liable for a lump sum payment which represents all the services provided during a specified episode of care under a bundled payment arrangement. Payers face less financial risk than with other value-based contract types, but you must make sure your claim is supported by records.
The best option for insurers that want to take part in value-based care is non-other than bundled payments. Bundled payments are advantageous to both payers and providers, and they often carry smaller financial risks for payers than other payment methods.