Dipak Nandi: How Covid – 19 is Affecting Practice’s Denial Rate

Today the recent pandemic has not only changed the healthcare industry workflow but also had created confusion surrounding the claims requirement and coding process.

With increased workload and new claims requirements relating to COVID – 19, there have been reports on increasing the rate of claims denials as well.

In fact, seeing the current situation, the claims rate of many healthcare practices are increasing day by day signaling a need for better claims management solutions. The covid – 19 have worse the trend of denial rate.

According to a recent survey done on 131 hospital executives in April and May of 2021 stated an average 10% percentage of claims denial rate by 33 percent of hospital executives. Furthermore, the claim denials upon initial submission were encountering an increase in 2016 from 9 percent to 10 percent in early 2020 to a total of 11 percent by the third quarter of 2020. As an average denial rate is between 5 to 8 %; today many healthcare practices are walking toward or into a denial danger zone.

Moreover, the shortage of skilled labor crisis is further increasing the rate of denials as well. This is why today outsourcing your denial management is the best alternative for many healthcare practices today.

Taking care of your lower denials rate, outsourcing an operational extension today helps in faster reimbursement and also aid in recovery to more acceptable levels of performance with reduced denial rate and claims rejections. Avoiding 85 percentages of claims denials and improving your overall medical billing and coding process in order to prevent denial from happening, an operational extension further works on training and educating themselves on prevention denials and improving outcomes. Moreover, as more than 20 percentage of denials are caused due to front end issues, outsourcing organizations put in extra effort on clinical validation denials, finding and correcting systemic issues, timely correct claims submission etc. Helping in better coding and billing practices, an outsourcing operational extension with updated technology further automates your revenue cycle with the possibility of better billing management and reduced denial rate.

Dipak Nandi, M.D, recipient of several entrepreneurial awards and a proud member of the prestigious AIIMS alumni and a board certified psychiatrist, who is also a pioneer in the field of healthcare outsourcing and telehealth solutions also stated, outsourcing an operational extension for your healthcare practices is the easiest way for better ROI and a convenient solution for better billing management where you get the time as well to focus more on patient care management.