Key Takeaways:
- A recent Home Health Care News article by Joyce Famakinwa, featuring industry expert Lynn Labarta, Vice President of Post-Acute Revenue Cycle Management at SimiTree, sheds light on common financial pitfalls faced by home health agencies.
- These mistakes, including unbilled claims, inaccurate payer selection, and lack of understanding of reimbursement timelines, can lead to significant financial losses and threaten the agency's survival.
- Fortunately, simple solutions like regular claims reviews, verifying patient insurance, and tracking payment windows can make a big difference.
Home Health Care News Sounds the Alarm:
The Home Health Care News article, titled "The Bottom Line: Top Billing, Financial Mistakes Responsible For Home Health Agency Struggles," dives deep into the financial vulnerabilities of home health agencies. SimiTree’s VP of Post-Acute RCM Lynn Labarta points out, that SimiTree has seen an alarming increase in agencies struggling with issues like:
- Unbilled claims: Thousands of dollars can languish unclaimed due to incomplete documentation or regulatory hurdles. Labarta emphasizes, "We've seen agencies that have thousands of claims sitting in the unbilled claims list... This makes agencies feel like they're seeing patients and working very hard, but not seeing the money coming through the door."
- Inaccurate payer selection: A simple error in selecting the primary insurance can lead to rejected claims and delayed payments. Labarta advises, "It could be because of a typo, or maybe they were just running through the process really quickly... We see this constantly."
- Lack of understanding of reimbursement timelines: Different payers have varying reimbursement cycles. Not knowing these timeframes can create unnecessary stress and cash flow issues. Labarta highlights, "Agencies need to understand that Medicare typically pays within 14 to 30 days for final claims. UnitedHealthcare, Blue Cross, and other insurance companies have different time frames. It could be 30 days; it could be 60 days."
Taking Action:
The good news is that these issues are preventable. Here are some actionable tips inspired by the Home Health Care News article and Lynn Labarta's expertise. Get more details on these tips in our recent blog or Lynn’s video message.
- Regularly review unbilled claims: Make it a priority to identify and address any roadblocks preventing claims from being submitted.
- Double-check patient insurance information: Implement thorough procedures to verify accuracy and consider capturing images of insurance cards for future reference.
- Track payer reimbursement timelines: Stay informed about different payers' cycles to manage cash flow effectively.
- Seek expert guidance: Consider partnering with a revenue cycle management consultant specializing in home health care for more in-depth support.
By following these steps and staying informed through valuable resources like Home Health Care News, home health agencies can avoid financial pitfalls and ensure their long-term sustainability.
Read more about Lynn Labarta’s tips in our recent blog post, 5 Common Pitfalls Leading to Home Health Agency Failure. She also made a video describing each issue and solution in detail: Watch now!
Don't let financial roadblocks hinder your agency's success. Let SimiTree be your partner in navigating the path to financial stability and growth. Learn more about SimiTree revenue cycle management and home health billing.
Discover Related Topics:
Explore a variety of topics related to healthcare revenue management, revenue cycles, and billing efficiency for a well-rounded perspective.
Tips for Streamlining Your Insurance Billing Process
EMRs vs. EHRs FAQ: Exploring Digital Solutions in Home Health and Hospice
How Can a Revenue Cycle Management Assessment Benefit Your Behavioral Health Organization?
The Hospice Billing Playbook: A Step-by-Step Guide to Success
Avoid the #1 Claim Rejection: Patient Eligibility