Common Mistakes in Dental Revenue Cycle Management and How to Avoid

Common Mistakes in Dental Revenue Cycle Management and How to Avoid

In the fast-paced world of dentistry, maintaining a healthy financial flow is crucial for the longevity and success of your practice. But Navigating the complexities of dental revenue cycle management (RCM) practices can pose challenges, and even minor mistakes can lead to significant financial setbacks. These setbacks not only hurt a practice financially but also damage a provider's reputation, eroding patients' trust in them. You might be providing quality care to patients, but if your staff is not good enough to support you on the financial front, you will not receive reimbursement. This article will discuss common mistakes that cause revenue cycle management problems and give tips on avoiding them.

Insurance Verification Errors

Insurance verification, often regarded as the foremost step of dental revenue cycle management, is not immune to mistakes. Some dental revenue cycle management companies tend to undermine the significance of this step and fail to put sufficient input into it. Insurance verification, an intricate process, can take a lot of work to navigate for professionals. Front desk staff may need to correct errors such as entering names with wrong spellings or mentioning the incorrect date of birth. Although these are minor errors, some insurance providers have stringent policies due to which they might reject a claim submitted with wrong spellings.
Additionally, some patients have more than one insurance under their belt. Ignoring these critical details can weaken your claim. Also, explain all the key aspects of an insurance contract, such as copayments and deductibles, to patients to avoid conflicts. Another significant error in insurance verification is the failure to gain pre-authorization from the payer. Some dental procedures may be deemed aesthetic by the payer, and a claim registered against it without seeking prior permission for rendering it may be denied.

Improper Claim Documentation

Documentation is paramount when dental billing services. A correctly filled ADA claim form and all essential documents are needed for a claim to be reimbursed by the payer. Hassles of dental coding may prevent billing staff from achieving both of them. This will result in shortcomings, leading to the rejection of a claim. Remember, if you fail to live up to the protocols and leave any crucial information unattended, the claim will be denied, inflating the administration costs. You will have to put extra resources into resubmitting it, impacting your dental revenue cycle management. Recurring denials can cause compliance issues as the payer may report this to authorities as malpractice. Apart from that, inadequacy in reporting supporting details, such as X-rays and Scans, that validate the need for a procedure can also lead to a claim denial.

Coding Errors

Around 800 CDT codes are organized into 12 distinct categories per the dynamics of dental care. Each category caters to a dimension of dental care. With so much to remember, coders are sometimes exhausted, leading them to commit errors. These mistakes can prove costly, primarily when codes for expensive services are used instead of the ones rendered. It can be perceived as an attempt to inflate bills and might go down as upcoding. Dental coding becomes more tricky when an experienced coder has to distinguish between codes that closely resemble each other, such as D4341 and D4342. Also, coding is reliant on documentation. As many billing facilities tend to leverage automation, some lag in updating the data stored online. This can pose challenges, as coding using outdated data will only lead to claim denial. Plus, coding two distinct services under one code will be considered malpractice.

Failure to Appeal Denied Claims

In dental revenue cycle management, sometimes the critical factor lies beyond verification, coding, and claim submission. With insurance companies rejecting many claims these days, it falls to the dental billing and coding company to take matters into their own hands and ensure that dentists receive their share. However, it is observed that due to limited resources, dental billing companies fail to register appropriate claims. This impacts the A/R health of a dental practice. Due to the shortage of staff, there is a sheer scarcity of time, due to which a denied claim may get overlooked.

Inefficient Scheduling

Inefficient scheduling can be a significant hurdle in maintaining a smooth-running and profitable dental practice. It can lead to a domino effect of negative consequences, impacting not just the financial bottom line but also patient satisfaction and staff well-being. It might include the following issues:

  • Gaps in the schedule mean less time for treatment and less income generated.
  • Double booking can lead to frustrated patients and potentially missed appointments, impacting revenue.
  • Long wait times, rescheduled appointments, and feeling rushed during consultations can lead to patient dissatisfaction. This can negatively impact their experience and potentially lead to them seeking care elsewhere.
  • Inefficient scheduling can create a chaotic and stressful work environment for staff. Frequent interruptions due to last-minute changes, juggling double bookings, and managing frustrated patients can contribute to staff burnout and potential turnover.

Tips to avoid mistakes in dental revenue cycle management

Errors in dental billing can cost a practice hefty sums and probably lead to compliance issues. To prevent these, consider the following tips.

Rely on Automation

In the above section, most of the mistakes were due to the human factor involved in the billing and coding process. Humans have a specific limit of time for which they can focus, so they are prone to errors. Conversely, automation does the bulk of the work with greater efficiency and less time. It is both accurate and cost-effective. It can be used to deal with recursive tasks. Also, advanced AI models and NLPs can assist in coding as they can process things like humans.

Conduct Audits

Dental practices normally follow outdated methodologies. Though these have worked out, they need to be updated with time. Conduct audits to identify these outdated practices causing dental revenue cycle management mistakes. Set a period after which the audits should be carried out. Try to invite a third party to perform them.

Implement EHR

Electronic Health Records do a world of good for your practice, as they make crucial data easily accessible and are an effective way to store and transfer data. You can opt for a personalized EHR system, which will be equipped with everything your practice needs. Customized dashboards will make it easy for your staff to document information and generate claims by utilizing this information.

A dedicated Appeal team

As many claims are denied, it is good to recruit a dedicated team to handle them. The team should be familiar with the industry's nuances and quick to pick the subject issue. They should be able to advocate on behalf of the client and provide all the necessary paperwork. An appeal team should also be capable of assisting providers in the wake of legal complications.

Outsource Your Dental Revenue Cycle Management Services to MedsDental

Struggling with a dental revenue cycle that is crippled due to recurring mistakes? Contact MedsDental, a reputed dental billing and coding domain. Our professionals will constantly communicate with you and dash every obstacle in the way. We are among the industry leaders, from accurate insurance verification to coding and claim submission. With the help of the latest technologies in the billing industry, we ensure that the data you provide remains secure. Overall, MedsDental is a company driven by a customer-first approach.

Don't wait, Get started with MedsDental today

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