Exchange EDI’s goal is to help healthcare practices increase cash flow by ensuring accurate payment from your payers, facilitating convenient upfront patient responsibility payment, and reducing patient bad debt and patient statement administrative cost.
“Cash flow is King” in every business and healthcare practices are no different. Cash Flow Management includes verifying the accuracy of what your payers are paying you. Studies sponsored by the AMA have proven that 16% of all claims are paid incorrectly – even after receiving a “scrubbed” claim. Practices are consistently underpaid between 3% and 8% of their gross revenues due to these payment errors.
Additionally, with increasing deductibles, co-insurance and co-pays, payers have shifted the credit risk of patient bad debts and delayed payments to the practice.
Today, that risk represents 25% to 30% of most practices gross revenue. As costs steadily rise, providers can expect this trend to continue regardless of federal or state legislation. And the cost of collecting patient responsibility will increase.
Everybody knows that once a patient walks out the door without paying, the odds of collecting drops significantly and the time to collect is usually more than 90 days from the date of service. In a report by McKinsey, patient bad debt totals more than $60 billion and rising rapidly.