Consequences of using the wrong place of Service Codes in Medical Billing

Medical billing plays an essential role in maintaining cash inflow. To support flourishing practice, doctors must ensure appropriate billing. While many doctors outsource the billing services, a few consider taking care of the billing part themselves. Irrespective of who takes care of the billing services, any error in medical billing can be distressing for the doctor as the claims get submitted on their behalf.

Along with medical codes for various medical procedures, usage of correct service code is vital too. Place of service code helps the insurer to ascertain the place where the medical facility was rendered. Based on the place of service code, the insurer determines whether it should be paid for the services provided or not.

Matching of the current location of service codes to the procedural codes is crucial while reimbursing the claims. If the place of service code does not correlate with treatment code, the claim may get denied. POS or Place of Service Code and CPT Code plays a vital role while claiming reimbursement.

How does an incorrect place of service codes in medical billing affect your practice?

• Impact on reimbursement: Typically, an insurer denies a claim if the codes are incorrect. Due to the rejection of a claim, there is no reimbursement, thus decreasing the cash flow for the clinic. Further distressing the doctors. On-time reimbursement of claims helps in setting up a flourishing practice.

• Adds to more administrative time: A little mistake can cause resubmission of claim after correction. After successful resubmission, the claim gets processed. This results in delaying the refund of the claim. Concisely, the delay in reimbursement may affect your practice.

• May cause complaints against you: An incorrect code may lead to legal implications. A legal implication causes distress to the doctor, thus dissatisfying them with the quality of service provided by the billing company.

How does the incorrect place of service codes in medical billing affect patients?

• May affect patient experience: Any discrepancies in medical billing can cause a denial of reimbursement of claims. Rejection of claims can delay refund if any, causing dissatisfaction amongst patients. The discontent of the patient might affect your reputation adversely.

Any error in medical billing directly affects refund. Despite taking utmost care to process an insurance claim without any discrepancy, sometimes we experience rejections too. We understand the importance of generating revenue on time, both for the doctors and the patients. Various Medical Billing Services like Capline Dental/Medical Billing Service provide you with a smooth reimbursement experience.