[4] Proper revenue cycle management ensures that billing errors are reduced so that reimbursements from the insurance companies are maximized.
[7] For remittance received in 2014, the average physician practice took 18 days to generate a claim after the date of service and had an 11% denial rate.
Clerical errors that are made within patient registration processes are one of the biggest culprits that cause non-clinical denials from insurance payers.
This can include many errors such as inputting an incorrect date of birth, not validating current insurance coverage/benefits, misspelling a guarantor's name, etc.
Normally, these errors are usually easy to identify and amend upon submitting a new bill to most payers after correcting a mistake made in the registration department.
Such regulations generally require keeping track of what treatments are provided to patients and for what reason, and medical coding is a standardized way of record such information (and sharing it with third parties, such as insurers).