How to Know It's Time to Update Your Old Billing System

We talk a lot about medical billing from the perspective of CPT codes, ICD-10 codes, HIPAA compliance and so forth. But let's not forget about billing systems. An organization working with an old, outdated system could be losing revenue and creating unnecessary headaches. It is far better to update an old system than continue struggling to make it work.

 

Is your organization still working with an old billing system? Have you considered an upgrade? Below are some telltale signs that an upgrade is in order. Remember this one thing: the effectiveness of your coders' and billers' daily work is directly impacted by the billing system they are forced to use.

 

Every aspect of healthcare is tightly regulated by both the federal government and the states. This includes medical billing. Just as one example, you know that your billing system needs to be HIPAA compliant. Yet compliance constantly evolves along with the industry and government regulations.

 

If your organization is struggling to maintain compliance through your current medical billing system, that's sufficient enough reason to consider an upgrade. Updating software is one way to quickly move the ball forward in compliance. Failing to upgrade increases the chances of running into compliance issues.

 

Revenue leakage is a serious problem healthcare providers must always be cognizant of. For the purposes of illustration, imagine a provider subject to 10% revenue leakage every single month. The leakage is a direct result of an inefficient, outdated billing system.

 

Investing in a new billing system will mean an additional expense. But how much will the new system save in terms of revenue leakage? Losing as much as 10% every month adds up to a lot of money over the course of a year. A new system capable of reducing revenue leakage could ultimately pay for itself over time.

 

Some of the revenue leakage attributed to older billing systems is linked to inefficiency. Old systems were not designed to manage modern industry. Yes, they can be retrofitted with workarounds that still allow coders and billers to get their work done. But retrofits and workarounds tend to cost time and add to workloads.

 

If your coders and billers do not seem to be as productive as they should be, perhaps they are struggling with an inefficient system. A new billing system that incorporates the latest digital tools could be the answer. The possibilities are at least worth looking into.

 

As you probably know, even the smallest errors can result in claim denial. An inefficient billing system prone to errors can lead to consistently high denial rates. This is a sure sign that your organization needs to upgrade its system. A new system built to reduce errors could drastically reduce denial rates.

 

Older billing systems are not known for their data analytics and reporting capabilities. Newer systems are. Why does this matter? Because state-of-the-art data analytics and reporting can help organizations better identify operational inefficiencies and lost revenue opportunities. By extension, this should lead to better decision making.

 

Choosing a new medical billing system might not be the easiest task in the world. A new system also requires a financial investment. But in the long run, ensuring that your organization utilizes the latest in electronic medical billing software will only increase efficiency and productivity, reduce errors, and provide your organization with greater opportunities for growth. There really is no good reason to not upgrade an old system.