Revenue Cycle Management is a crucial step in the revenue generation process of a healthcare organization. However, another significant step in the RCM process is Payment Posting.Payment Posting in simple terms, is logging of the payments into the system, thus keeping a record. But why is it so important? What role does it play in medical billing? Let us understand Payment Posting in detail.
What Is Payment Posting?
Payment Posting which is logging in your payments into the system gives you a brief look at the overall financial condition of your organization. With the accurate and efficient posting of payment, ents one can get clarity about their company's financial status and with the resulting data the said Healthcare organization will be able to take the needful steps to increase their Revenue.
Payment Posting In Revenue Cycle Management
As said earlier Payment Posting is an important step in the RCM, but why is that? Now an efficient payment Posting, meaning accurate records in the system and on-time postings of the record helps the person in charge to observe the trends in the revenue cycle. This is essential from the future point of view of the organization. With a close study of the trends in the revenue cycle, further opportunities for increasing the revenue can be identified. Now that we know the importance of Payment Posting, let us understand how it can help boost the revenue cycle.
EOB also called the Explanation of Benefits includes the date that the patient received service and what kind of service it was.
ERA, also called Electronic Remittance Advice, is nothing but a digital version of EOB.
Payment Posting at regular intervals will lead to the data matching of EOB and ERA
With regular posting, the organization can report or reopen the denied claims.
It helps keep a record of the denied claims so that they can be sent to the denial management for resubmission to the payers.
This will keep a low record of pending claims and generate more revenue
Once the unpaid transaction or payments are highlighted they can be then transferred to the patient's account.
With irregular payment Posting these unpaid payments would remain buried deep inside the organization's management
While processing the payments into the system records one can come across wrongful or unusual contracts.
With the help of regular payment Posting, these unusual agreements can be reported or adjusted to generate revenue.
When going through the payments one can find the denied claims or-covered services.
Once the problem of delayed payment or no payment is Known, the issues can be easily solved in person.
1. EOB and ERA data match
2. Denied Claims
3. Patient's responsibility
4. Processing Write-offs
5. Solve issues in person
Frequently Asked Questions
1. What are the requirements for a person skilled in payment Posting?
The person handling the Payment Posting must have an eye for detail. One should not miss out on the mistakes in the payments during posting as this is the final step.
2. What information does the Explanation of Benefits (EOB) contain?
Payer's name
Payer's address
Name of the patient
Name and address of the healthcare provider
Policy identification number of the patient or also called Member ID
The date on which the claim was received by the payer
The date on which the claim was processed or denied
Procedure Codes for the treatment provided
The charge amount, that is charges for the service performed
Claim number or control number which is received by the payer when their payment is recorded in the system
EOB contains the following information
3. What is the formula for Payment Posting?
Paid Amount= Allowed Amount - Patient Responsibility.