importance of payment posting in medical billing process

Do Not Mix Charge Entry With Payment Posting? Here’s What You Need To Know About These

What is the Charge Entry in Medical Billing?

Charge entry is the process or set of processes that submit charges for medical procedures and other patient-facing services to the appropriate biller. It includes a detailed description of the services provided, as well as a preliminary understanding of important information.

The data that must be collected, analyzed, and prepared for input begins with patient information, including demographics, health history, and health insurance or payment plans. Next, gather more information about the payers involved, as well as all the details of the care appointment itself (dates, caregivers seen, services provided, etc.)

What is posting payment in medical billing?

Posting payment is one of the most common challenges faced by most healthcare providers. It is nearly impossible to complete the payment process without issuing payments through these medical billing firms. That’s why posting payments is the most complete part of revenue cycle management. Payment posting affects many medical practices, which can have a significant impact on efficiency, patient care, and overall financial growth.

Difference between charge entry and payment posting?

Charge entry and payment posting are the two main steps in RCM’s medical billing. Both have their significance and functions in RCM.

In the RCM process, charge entry follows the encoding steps of ICD, CPT, and HCPS. Perform the process of assigning the appropriate value in U.S. dollars to the patient account based on the selected medical code and corresponding fee schedule. Reimbursement for healthcare provider services is based on the charges entered for the medical services provided.

On the other hand, payment posting is a step after submitting a claim, whether it is electronically or on paper. In addition, it allows viewing of payments and also a clear view of the financial structure of medical practice, allowing for immediate problem identification and resolution with great flexibility.

Here are the essential steps for charge entry in RCM.

As they are critical to patients, providers, payers, and all other stakeholders in the healthcare industry, billing processes must be improved. At its most basic level, charge entry can be thought of as a simple two-step process:

  • First, enter all billing and payment information related to the patient visit.
  • Then, enter the transaction by fine-tuning charges with the medical code associated with the visit.  
  • However, the most impactful charging process is broken down into several additional steps to ensure that the needs of all stakeholders are taken into account.
Receive documents 

The first step corresponds to enrolling the patient and determining financial responsibility from the comprehensive billing cycle process detailed above. Include prorated charges and prorated payments for all required forms of patient care, such as Explanation of Benefits (EOB) and payment by cheque, cash, credit card, or other prepaid copays.

Once all required documents and documents are received, a dedicated team will assign them to the appropriate HIPAA, compliant storage location and prepare them for further input and analysis.

Enter relevant details

The Payment History team captures a range of demographic data, including patient references and billing system details such as patient account numbers, amounts allowed, amounts billed, adjusted amounts, and amounts paid. In addition, the billing reference data, including account number, service date, payment amount. The details about the denial are also entered into the billing system.

EOB Tracking

If the patient is responsible for some or all of the balance owed and there are issues such as late or non-payment, the provider may investigate the EOB and other details of its coverage (or lack thereof) to determine that further action is required. The claim could lead to legal action or negotiations between providers, payers, and patients.

Denial Analysis

Similar disagreements can arise with other payers such as insurance companies, except that patients may neglect to pay some or all of what they owe. 

If denial is made to the provider, this may indicate a problem with the medical coding or billing process. Possible causes include inaccurate coding or one or more treatments deemed appropriate or covered by the payer for the patient. To recover money owed in these cases, in-depth analysis is a key consideration.

I-Med Claims charge entry team investigates each case and reviews EOB claims. It allows for appropriate decisions to be made and facilitates the necessary procedures to restore shares.

Customer satisfaction

The final step in the process is optional in terms of legal or financial requirements, but not for companies seeking to build long-term, mutually beneficial relationships with patients. Service providers should take continuous measures, such as collecting customer feedback and making adjustments as needed.

We evaluate reviews shared by our customers about data quality and make necessary improvements. This ensures high-quality and accurate medical billing services.

Payment Posting Process

Payment posting provides an overview of the validity of the revenue cycle in several ways. It allows you to understand chargeback trends and analyze them. Authentic payment postings provide a clear view of your revenue cycle status, so you must choose a highly qualified team to process payments. There are three types of payment posting in medical billing:

  • Manual Posting
  • Auto Posting

 All payers submit an EOB (Explanation of Benefits) or ERA (Electronic Remittance Advice) to pay the claim. Medical billers immediately post these payments to the appropriate patient account for specific billing claims. Payment postings are processed according to customer-specific rules that indicate cut-off levels for adjustments, cancellations, refund rules, etc. However, it can be a patient payment posting, insurance payment posting, or denial payment posting. 

How I-Med Claims Offer You An Error-Free Charge Entry Process? 

It is always the right time to outsource charge entry and payment posting to medical billing companies like I-Med Claims. Because they have required expertise to increase cash flow improvement rates, reduce late payments, and most importantly, reduce the chance of claims being denied. 

They work closely with healthcare companies to understand the main pain points in providing medical bill entry services, identify their areas of strength and tailor services accordingly, and establish regular billing services to serve their clients’ best interests. 

Outsourcing Charge Entry and Payment Posting Services to I-Med Claims to achieve an error-free service that allows them to receive compensation for claims promptly. Call us now for more details and hire us so you can excel in your medical practice. 

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