Payment Posting

Payment posting is the process of accurately recording payments received from insurance companies and patients. It’s a key step in medical billing that helps healthcare providers to Identify any errors or mismatches in payments, keep revenue moving smoothly and monitor how much money is coming in and from where. A well-organized payment posting system is essential for maintaining the financial health of a medical practice. It ensures that any denied or underpaid claims are followed up on quickly, so you don’t lose out on revenue. In short, payment posting keeps your finances accurate, organized, and up-to-date, so you can focus on running your practice without worrying about missed or incorrect payments.

Here’s a detail of its key benefits

• The faster and automated payment posting leads to increase in cash flow
• Timely posting reduces days in Account Receivable
• Automated data entry can help to minimize human errors and preventing over/under payments
• The denials are immediately track results in faster appeals
• Patient’s payment calculates correctly preventing incorrect billing
• Due to lesser manual work the focus of billing team increases
• Detailed logs tracking and HIPAA compliance avoiding fraud risks
• Due to automated system, manual work load reduces leads to lower administrative costs

Here’s a simple breakdown of how payment posting works in medical billing:

1. Payments can come in through different methods, such as checks, EFT (Electronic Fund Transfer), or ERA (Electronic Remittance Advice).

2. Every payment is carefully reviewed. We double-check the patient’s information, payment amount, and payer details to make sure they match the original claim.

3. If a payment covers multiple bills, it’s distributed correctly across the patient’s outstanding balances.

4. Based on the payer’s Explanation of Benefits (EOB) or contractual agreements, we process any necessary adjustments or denials to ensure everything is accurate.

5. Payment details are entered into the practice management system, either manually or electronically, to keep records up-to-date

6. The patient’s account is updated to reflect the payment, including any changes to their outstanding balance and payment history.

7. Finally, we make sure all payments are accounted for and match the records to ensure everything balances correctly.

Common Challenges and Best Approaches

• The manual data entry errors can mitigate by automated ERA (electronic Remittance Advice)
• The complexity of denials can be reduced by using denial management software to sort denials.
• Compare posted payment daily with bank deposits to reduce the chances of discrepancies or catch early if any
• Automatically cross checking of payments against fee schedule results to overcome underpayments
• Regular compliance audits and staff trainings lowers the compliance risks
• Slow posting results in time consuming workflows and increase days in AR which can be mitigate by posting multiple payments simultaneously
• Direct pulling of payment data from payer portals overcome the challenge of payer- specific complexity
• Outdated systems lack automation, so companies should invest in practice management systems with API integrations

Maximizing cash from claims

The payment posting process is complex but prioritizing automation and technology the cash flow can be increased. Our goal is to assist our clients by providing exceptional services. Let’s work with One O’Seven RCM and elevate your practice’s efficiency.

• Dedicated team
• All hour services
• Transparency
• Professionalism
• 100% Data security
• Accurate documentation
• Regular updates
• In accordance with HIPAA and Industry standards
• Reduce administrative burden
• Increase cash flow
• Maximize reimbursement
• Innovative and customized solutions