10 Ways Healthcare Lockboxes Can Help CFOs Enhance Their Revenue Cycle

 Erika Regulsky Tags: , , , , CFO's Corner, Practice Management
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Healthcare Lockboxes Can Help CFOs Enhance Their Revenue Cycle

“Times they are a changing”, are the opening lines of Bob Dylan’s iconic number. The quest for healthcare CFOs to find ways to cut costs and reduce payment times is reflective of the widespread changes in the healthcare sector.

Lockbox services are one of the payment solutions that make healthcare professionals go, why didn’t anyone think of this before? It is been around for a while now. But has become a staple of healthcare conversations in the recent past.
For hospitals and medical groups that process thousands of claims a month, a lockbox can not only speed up payments but also offer better patient experiences.

Lockbox 3.5 - A lot has changed

Banks have offered lockbox services to healthcare providers for eons. Mailed remittances were collected, checks were deposited, patient payments could be mailed in with a scannable coupon. And all went swimmingly well. Now, the lockbox services provided by banks have undergone a sea change.

Financial institutions are enabling healthcare providers to post receivables information automatically and balance payments to the claims super-quick. Efficient electronic processing of claims, online access to claim and remittance information, remote depositing facilities, automatic EOB posting, lockboxes do a lot more than serving as a dedicated PO to deposit checks.

Here is how lockboxes speed up revenue cycle processes

1. Eliminates tedious manual processes

Manually processing EOBs is cumbersome. Lockboxes enable staff to create auto-postable records of EOBs easily. Explanation of Benefits are imaged and converted into electronic documents. The data in the documents are reconciled with medical claims and payments. This saves truckloads of time.

2. Consolidation of reimbursement information

The ability to access and manage data without time lags is vital to address reimbursement issues proactively and speed up the payment posting process. Online tools enable access to remittance advice and payment details online. This enables healthcare organizations to view important reimbursement information at a single place.

3. All on the same page

Lockboxes enable multiple payers to process both electronic and paper payments within a single system. This reduces processing times and quickens the payment cycle. Most lockboxes provide access to 500+ payers. Payments received can be posted to patient management portals or practice management systems directly.  

4. Shortens payment TAT

Nobody likes playing the waiting game. By picking up mail several times in a day a dedicated lockbox provider quickens reimbursement turnaround time. This tightens the payment process and reduces reimbursement turnaround time.

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5. Better receivables data management

Receivables data management becomes effortless as remittance data is available on a single file. Enormous amount of time is wasted by providers to access reimbursement information that lies in numerous systems and files. A single data source eliminates the effort and energy expended in locating payment data.

6. Minimizes administrative efforts

Lockboxes minimize administrative costs and burden. With pressure to lower cost-to-collect lockboxes are a solution that most healthcare organizations are turning towards. By lifting the burden of manual and repetitive tasks healthcare lockboxes lighten the load on staff and free them up to focus on other important activities.

7. Large volume? No issues

Large volumes of reimbursement data slows down payment processes.The efficient and quick processing of large volumes of payments increases efficiency, of healthcare lockboxes, make them an indispensable part of medical practices. Most lockboxes offer customizable features so there are no steep learning curves involved.

8. Expedites remittance tasks

Healthcare lockboxes provide a suite of  tools to enable providers increase the efficiency of remittance tasks. Whether it is secondary billing processes, resolution of denied claims, follow-ups with insurers or resolving billing issues lockboxes expedite major billing processes.

9. Highly secure

A secure, HIPAA compliant and superior quality processing environment reduces security risks and theft. Banks make data security a top priority and employ a cutting-edge security infrastructure to safeguard data against theft and misuse. This addresses biggest threat plaguing healthcare organizations – the security of their patient data.

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10. No more single checks

Healthcare organizations usually receive a single check for multiple payments. The provider will have to manually check the corresponding EOBs to know which claims were reimbursed by the check.  By working with a healthcare lockbox and going down the electronic path, this tedious task of reconciling payments is finally off the plate of medical practices.

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I’m a multi-certified revenue cycle management professional and compliance officer with 20+ years of experience. I contribute articles to leading healthcare publications and journals. I am currently working as Senior Transition Manager, in BillingParadise headquartered at Diamond Bar, California. BillingParadise offers Medical Billing Services that intersect perfectly with the EMR/Practice management system you use.BillingParadise has offices in New Jersey, New York, Florida, Georgia, Minnesota, and Texas.

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