Payment Posting
When posting payments in a practice management system the need for accuracy is essential. Inaccurate postings can result in a serious downstream of financial effects for your practice. Though the importance and possible negative ramifications of posting payments inaccurately are seemingly obvious, mistakes can easily occur with a simple typo. When posting an insurance payment to the practice management system, a $90.00 adjustment can easily become a $9000.00 adjustment with the slip of a finger. Here are some possible downstream effects of these errors and helpful ways to prevent them.
Downstream Effects of Inaccurate Payment Posting
False Credits
When transactions are posting in excess of their true amounts it will leave a credit on a patient’s account. If left uncorrected or unnoticed, this credit may be carried over to subsequent balances due. For example, a posting error resulted in a $9,000.00 credit on a patient’s account. The patient’s subsequent surgery leaves an $8,000.00 patient balance towards their high deductible plan. The credit that resulted in error may be used to cover the patient’s portion of the surgery with no monies received from the patient. This error in posting has now cost the practice $8,000!
Deflated Accounts Receivable
Credit balances in the practice management system can deflate accounts receivable (A/R), giving a false sense of financial stability. For example, a $9,000 credit with Blue Cross Blue Shield (BCBS) might hide overdue claims. On the aging report, BCBS may show a small balance, but when credits are added back, the true issue—$9,000 in claims over 60 days old—becomes clear. This hidden problem can lead to significant financial losses for the practice.
Incorrect Patient Statements
Incorrectly posted financial transactions can lead to inaccurate patient statements, causing confusion and frustration. Patients may receive bills for amounts they don’t owe or miss statements for balances they do owe. This not only impacts revenue but can also result in losing patients due to the lack of clarity. Accurate statements are crucial for maintaining trust and ensuring patients return.
How to Prevent Errors
The most effective way to prevent these errors is through attention to detail. Each transaction posted should be reviewed for three key balancing factors.
Does the payment amount
entered match the monies received?
Does the payment amount
Does the adjustment amount entered match the contractual adjustment amount listed on the remittance advice received?
Does the remaining balance match the amount designated as patient responsibility?
Following these three verification steps prior to finalizing any financial transaction posted to the practice management system will ensure accuracy and prevent the financial loss associated with these errors.
