Payment posting plays a crucial role in the medical billing and the revenue cycle management process, making it an integral element for the provider to complete the reimbursement process. In addition, this enables healthcare providers to monitor and track its incoming payments from patients or insurers. As it is one of the most significant challenges many healthcare providers face, it is important that payment posting is done accurately to optimize the efficiency of administering patient care and boost the organization’s revenue stream and financial growth.
Payment posting, in other words, refers to cash posting, which provides the medical billing team with a clear and thorough overview of the organization’s practice financial structure. This is important in helping them identify the root cause of the issue and resolve it as soon as possible.
When the claim is submitted in a standard process, the insurer usually processes payment through an electronic fund transfer alongside an EOB (explanation of benefits) and is sent to the healthcare provider. However, this is only possible when the patient has signed the AOB (assignment of benefits), which grants the insurer the right to pay the organization directly.
There are two types of posting – auto and manual. The method used relies heavily on the extent of the patient’s insurance coverage and financial capability.
Payment posting should be done accurately to minimize major issues and hiccups later down the track. For example, as the AR follow-up team is tasked with resolving outstanding balances from claims listed in the aging reports, an incorrect posting to the wrong patient’s account could misdirect the team to allocate resources to chase for paid claims inaccurately. When in fact, the time could have been spent following up on unpaid or denied claims. In the long run, this could also affect the accuracy of claims submission, delaying the efficiency of the medical billing process, especially when it involves third-party payers.
Payment posting is incredibly beneficial when done correctly. It provides you with a clear overview and structure of your revenue cycle, allowing you to easily manage the medical billing process. In addition, as prevention is the best solution, standardizing an excellent payment posting procedure encourages you to stay updated on the latest documents and develop effective strategies to prevent claims denial. That is why KR Billing Solutions is here to provide you with effective and efficient solutions that can help you stay up-to-date with your medical billing tasks. We understand the struggles of running a healthcare practice and want you to focus on what you do best: treating your patients.