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Avea Solutions Blog

3 Methods For Reducing Write-Offs And Creating Cash Flow Consistency

Nov 27, 2018 3:23:21 PM / by The Avea Solutions Team

The Avea Solutions Team

3 Methods For Reducing Write-Offs And Creating Cash Flow Consistency


Write-offs have, unfortunately, become the norm for behavioral health facilities these days. Many treatment centers lack the tools that are pivotal for fighting incorrect denials and poor reimbursements; others simply lack the necessary infrastructure for creating consistent revenue and avoiding excessive write-offs.

That being said, here are some tools that will help reduce your write-offs in 2019:

Issue-Based AR Reporting

AR Reporting is always a necessity when it comes to reimbursements and collections, but wouldn't it be nice to know WHY your claims are 30, 60, or even 120 days old?  Understanding the trends and problems that arise during the billing cycle will help you create better processes for more efficient collections.  For example, if you’re able to identify an issue for a specific payer that’s affecting more and more claims, you can employ better strategies to mitigate that processing problem in the future.  Additionally, issue-based reporting will help strengthen the relationship between your billing team and your clinical team.  If your clinicians understand how their health record documentation affects your billing, you’ll be able to alleviate unnecessary medical necessity denials which are typically written off at the end of the year.

Automated/Streamlined Claim Submission

Claims management is complicated enough on a good day. Why make it harder by continuing to use paper files that can be misplaced or Excel spreadsheets that can be mislabeled? Having a streamlined system in place goes a long way toward making sure claims are being submitted and billing is occurring on a regular basis, freeing you up to focus on growing your business as a result. Automation eliminates the need for manual entry by utilizing an integrated system that turns documentation into charges, allowing you to run the management process via a system that detects changes and notifies you in turn. While it may initially seem daunting, integrating automation into your business will eliminate a huge amount of human effort (and error) from the process. 

Tier-Based Denial Management

Tier-based denial management ensures a strong quality assurance process for your team, leading to less mistakes, less delays, and ultimately, less write-offs.  When team members and billing specialists have the ability to escalate and discuss denial problems, they're able to resolve complex claim issues and fix incorrect denials more effectively. Having a system in place that promotes communication across multiple levels of expertise is invaluable within the behavioral health billing world.


Further Reading:

-  3 Questions To Determine If A Billing Company's The Right Fit For You

3 Ways Electronic VOB & Eligibility Saves Money & Time By Finding The Right Fit

- Aspen Ridge & Avea: Sharing A Vision

- Why AveaOffice?


Topics: Insurance, Claims Management