Denial Management Services

Denial Management Services


At Medstar Billing Services, we help to improve the financial performance of the practice with denial management services. The analysis of denial management is a vital aspect of healthcare since it assists in analyzing unclear data to limit denials.

Moreover, our staff at Medstar Billing Services follows up with you on your denial management. It conducts a thorough analysis of denials and resolutions to ensure the success of appeals. We are aware of the anxieties of the healthcare provider concerning and managing denials. It’s one of the most stressful issues faced by an organization in the field of healthcare.

Most of the time, the primary reason for denial management is insufficient or incorrect information. Therefore, we make sure to trace every code following the type of denial and the responsibility. To reach a perfect decision on denials, we act as a plan and consider the crucial aspects to clear, accurate, and actionable data that will help us report denials frequently and make adjustments to your account.

We ensure to collect the maximum information and keep an eye on the amount to be paid. Furthermore, we believe in offering the most effective denial management solutions with the right software and techniques.

Denial Management in Healthcare

Based on the denial management in healthcare rate report released in February 2021, the total amount of claims submitted for more than $3 trillion in claims, totaling $262 billion, was rejected. However, the most shocking part is that healthcare providers or organizations have never appealed or renewed over half of these denials. Healthcare institutions should implement a preventive denial management strategy instead of a corrective one. Denial management requires a significant quantity of resources, time, and money. Adopting an approach to preventive management of denials can safeguard the revenue.

Find the Denial Management in Medical Billing

Analyze the last 12 to 15 months of claims submissions and the denial management in medical billing information to determine the cause. However, after identifying the reason for the denial and identifying the root cause, classify each denied claim. However, common reasons for denial management in healthcare include prior authorization or incorrect coding, late medical insurance claim, and non-network billing. We have compiled a list of the top denials.

Radiology: MD may have ordered an examination but failed to provide the reasons for the test. Numerous times within the emergency room (ED) or same-day surgery (SDS). Same-Day Surgery (SDS): Lead removals with electrodes that aren’t working and the complication codes not proving medical need.

CCI conflicts with HCPCS codes 58661 are 44970 and billed as 44970. CPT 59 must be added to 44970. The coder isn’t prompted to do so by 3M to add CPT 59 during programming.

Rejections at Evaluation and Management (E/M) at different levels. Most of the time, the evaluation and management stage is performed by the E/M department or through another vendor and not by health information management specialists. 91 Rejections of duplicate lab modifiers regularly. We discovered it in the beginning, and it could remove a lot of edits. 59 Rejections daily. The same thing happens with modifier 59. If found on one end of the process, you could remove several edits.

Figure Denial Avoidance Team

It should be a multidisciplinary team consisting of experts from Medical Data Entry, coding accounts receivables, billing, and service providers. All members of this team must assume 100% control of resolving any denial management. This responsibility demands a steady commitment and experience. Therefore, choosing the best staff members that have the proper skills is vital.

Offer Training

Look for areas to improve your revenue cycle management and offer training. For instance, if you discover that medical coding is a significant reason for denials management in medical billing, you should provide medical coders with the necessary training. In addition, the coders you assign to them should be familiar with the payer mix and specific code guidelines.

Monitor Performance

Continuously monitor the effectiveness of each of the activities that are part of your revenue cycle management process. Monitoring performance will lead to an overall decrease in appeals’ success and denial rates. Some of the information to be considered include the denial rates, appeals rate, and appeal success rate.

Denial Rate: This could comprise a variety of claims that are denied in the following categories: procedure codes smart, wise for payers modifier wise and patient wise, as well as location-wise, as well as rendering provider wise. This degree of precision can help identify the effects of denial prevention strategies over time.

The ratio of appeals: Maintain a record of the number of appeals filed. Knowing the root cause, resolving denial, and appealing using additional or corrected information is the best method to deal with appeals. Appeal success rate Ratio of appeal success is not too low because it could not be a good enough reason to justify the time and effort of team members for denial prevention.

Denial Management in Medical Billing

Denial management in medical billing is a constant problem for many healthcare organizations’ efficiency, revenue, and cash flow. Moreover, the numbers speak for themselves. Did you know that the industry standard for denial of medical billing is at 2 percent for hospitals? Medical practices are currently experiencing medical billing denials at rates that vary from 5-10 percent, and the average being 4% for top performers. However, certain medical facilities even had first-rate denials to billing that were as high as 15 percent.

When there is no solution, the write-offs may range from 1 to 5 percent of net revenue from patients. In 300-bed hospitals, the average one-percent write-off in 300-bed hospitals can amount to about $2-$3 million per year. That is a huge sum for a medical facility.

The good news is that medical procedures can prevent the majority of denials in billing. However, cutting them down by just a tiny fraction could significantly impact the performance of your business. The best way to approach this is to learn about the various reasons for denials, identify the most common issues with billing and take the necessary methods to avoid these.

A majority of businesses recognize the negative impact of denials on their revenue. However, they do not have the expertise and technology to establish a successful preventive process for managing denials. Outsourcing to a billing company like Medstar Billing Services has the skill and medical specialty expertise to enhance your revenue cycle and boost collections by preventing denial management.

Here’s Why Denial Management is crucial?

  1. To determine the cause of each denial.
  2. To analyze patterns and trends in denials and determine the reason for costly denials.
  3. Need to Process reports for evaluation of denied claims.
  4. For seamless integration of the software and efficient workflow that will prevent repeat denial.
  5. To address refusals within 72 hours after receipt.
  6. To lower the cost to collect.
  7. To improve the collections of the account and efficiently manage denials.
  8. For cutting down on manual labor and effort in examining mistakes in denial.

Why Should You Choose Our Services for Denial Management?

A better way to approach things is by contacting Medstar Billing Services follows a straightforward and efficient approach that allows denial management to be hassle-free and improve the efficiency of the cycle. However, we track the denials and follow the rules to stop and edit any denial lawsuits. We present an accurate and timely report of management that helps to prevent denials. Moreover, we observe the payment pattern by payers, which aids in understanding the reason for denials of claims. We examine the effectiveness of denial resolution, which can be beneficial long-term.

Contact Us Now at

Phone (407)337-5901