How HME Billing Solutions Can Increase the Revenue Flow

Home Medical Equipment (HME) is the type of equipment patient use at home. These include crutches, hospital beds, wheelchairs, walkers, oxygen tanks, prosthetic devices, etc.

With advancements in technology, the consumption of these types of equipment is increasing. The billing process of such equipment also comes under the Hospital Revenue Cycle Management Process. Automated billing through software would help in claim submissions.

The companies offering HME billing solutions provide automated billing for different types of equipment. Outsourcing to such companies will provide a smooth financial flow.

HME Regulations

HME billing and claims are primarily based on a doctor’s advice. It is not possible for a patient to buy an HME and get a claim reversal without a prescription. The payor regulations and compliances keep changing continuously. So it is essential to stay up-to-date with the billing process. Not being able to catch up with the latest practices may lead to a lag in the cash flow.

A valid prescription from the practitioner helps in the settlement of claims. This requires multiple stages of verification between the billers and the doctor. Sometimes, due to time shortages, the bills are not properly verified on time leading to delays in settlements.

Contribution of HME Billing Solutions

Billing companies provide a lot of advantages. Apart from lowering the workload on the institutional staff, the billing process is also made convenient. Other advantages of HME companies are -

1. Minimize denial rates

Lowering the denial rate is the primary achievement of billing companies. This is because of the proper billing and timely submission of claims. Past data analysis also provides a better understanding of the rejections.

2. Lower cost-to-collect

Quicker settlements mean lower cost-to-collect. This is because of on-time submissions along with the required supporting documents. Limited staff, as well as automated billing, also contribute to this factor.

3. Efficient cash posting

Ensuring the completion of settlements on time. Making sure that the institute receives cash on time. Updating the A/R so as to keep complete track of the financial flow of the institute.

4. Lower DSO

Completion of settlements on time lowers the Days Sales Outstanding (DSO). DSO is the time taken for any company to receive payment for a particular sale. The lower the DSO, the better it is for the company.

5. Lower the cost of operations

This is because of the virtual billing, there is not much load on the staff. Faster settlements also mean there is no need to work on the same bills multiple times.

6. Updated with changing policies

Any changes to the compliances or the billing process are timely updated by the billing company. This lowers the errors due to the usage of old codes.

Final Thoughts

Home Medical Equipment’s are facing an increase in consumption every day. This directly leads to an increase in the billing requirements. HME billing companies have a great potential to keep the revenue flow in financial institutions in check.

These companies provide complete HME billing solutions. This includes raising claim settlements and monitoring them till the time of completion. The billing companies maintain the RCM to fulfill any audit requests. The A/R book is kept up-to-date.