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Incredible People | Extraordinary Results
Conquering
Denials;
How to win the War
Presented By
Cassie Wise
Executive Director of CBO Services
Healthcare Resource Group
WE DID
IT!
hrgpros.comIncredible People | Extraordinary Results
Todays Topics
1. WHY!?!?!?
2. What are we up against?
3. Gather the Data
4. Gather the Troops
5. Take Action
6. Monitor Results
WE DID
IT!
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
WHY!?!?!?
Claims
recovery is
complex!
(This is the EASY Answer)
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
 Ever-changing Government
Regulations
 Insurers tightening their belts
 Lack of communication
between Patient Financial
Services & other
departments
[This is the REAL Answer]
WHY!?!?!?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Before a claim reaches
the billing team it may
have been touched by
upwards of 25
different people
[Whoa! That is a lot of people!]
WHY!?!?!?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Charge
Master
Lab
Registration
Utilization
Review
ABN’s
Authorizations
Referrals
Occupational
Therapy
RespiratoryTherapy
WHY!?!?!?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
They
did it!
When there are so many
people/departments
contributing to each claim it
naturally leads to finger
pointing
WHY!?!?!?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
What are we up against?
On average 10% (or $262 billion) of claims
billed Nationwide are
denied upon 1st submission
10%
1.Independent study utilizing 2016 claims data
Claims
Denied
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
What are we up against?
90% (or $236 Billion) of the annual $262
Billion in denied claims were preventable
90%
1.Independent study utilizing 2016 claims data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
What are we up against?
1.MGMA Study 2.Advisory Board Study
3.Independent study utilizing 2016 claims data
$262Billion
$165Billion
$107Billion
$-
$50
$100
$150
$200
$250
$300
Total Denials Recoverable
Denials
Werent
Recovered
Billions
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Always Remember:
1. Receipt of a denial does not
necessarily mean lost
reimbursement, but it always
means additional labor
2. Denials will NEVER be
completely eliminated
What are we up against?
1.MGMA Study 2.Advisory Board Study
3.Independent study utilizing 2016 claims data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
The best practice
target denial rate is
5%
What are we up against?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Denial Rate Formula:
Total number of claims denied
Total number of claims remitted
=
Denial Rate
(If claims remitted data is not
available, claim submission data can
be used in its place)
1.HFMA Key Maps
What are we up against?
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
HELP!
Gather the Data
Key data elements for Denial
Tracking:
 Date Denied
 Payer
 Denied Amount
 Denial Reason
 Action taken to resolve
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
HELP! Condition the denial data into
root-cause areas
Example Root Cause Areas:
• Billing
• Coding
• Registration/Authorizations
• Additional Info Requested
• Contract/Credentialing
• Patient Care/Utilization
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
HELP! HRG 2019 cumulative denial data
from 100+ facilities showed:
- Billing 25%
- Coding 9%
- Registration/Authorizations 39%
- Additional Info Requested 16%
- Contract/Credentialing 4%
- Patient Care/Utilization 7%
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Billing 25% of overall denials
The top 3 reasons:
1. Duplicate claims
2. Untimely filing
3. EOB from primary required
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Gather the Data
Coding 9% of overall denials
The top 3 reasons:
1. Service included in another
procedure
2. Diagnosis/CPT Code related
denial
3. Invalid value/occurrence code
or Modifier
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Registration/Authorizations 39%
of overall denials
The top 3 reasons:
1. Authorization missing/invalid
2. Coordination of benefits
3. Patient not eligible on date of
service
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Additional Information
Requested 16% of overall denials
The top 3 reasons:
1. Medical Records Requested
2. Accident information requested
3. Physician sign off required
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Contract/Credentialing 4% of
overall denials
The top 3 reasons:
1. Physician not credentialed
2. Physician credentialed
incorrectly
3. Not contracted with payer
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Patient Care/ Utilization Review
7% of overall denials
The top 3 reasons:
1. Medical necessity not
established
2. Plan limit exceeded
3. Max benefits paid
Gather the Data
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Take Action
1.Create a “Denial Committee” that
includes a team member from each root
cause area
2.Schedule a monthly committee meeting
3.Each month, review the denial data as a
team
4.Identify which denials will be the area of
focus [typically the top 5 - 10]
5.Assign an owner for each of the chosen
denials
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Measure Results
1. Distribute denial details each
month, prior to the committee
meeting
2. Each department should
address their progress
3. CELEBRATE positive
movement!
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
ExampleReports
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
ExampleReports
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
ExampleReports
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
ExampleReports
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Measure Results
During the denial prevention
process, you may find common
payer related claim denials/delays
Creating a Payer Scorecard can
assist in resolving any payer related
issues discovered during the
denials process
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Measure Results
Common Payer Scorecard
Metrics
 Average time to pay
 Denial Rate
 AR Days
 Payment Accuracy
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Take Aways:
1. Gather the Data
2. Gather the Troops
3. Take Action
4. Monitor Results
Follow these steps and…
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
You WILL
Conquer
your
denials
Take Aways:
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
Over every mountain
there is a path,
although it may not be
seen from the
valley
-Theodore Roethke
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
hrgpros.comIncredible People | Extraordinary Results
© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED

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Conquering denials presentation 30 minute hrg outreach

  • 1. hrgpros.com© 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED Incredible People | Extraordinary Results Conquering Denials; How to win the War Presented By Cassie Wise Executive Director of CBO Services Healthcare Resource Group WE DID IT!
  • 2. hrgpros.comIncredible People | Extraordinary Results Todays Topics 1. WHY!?!?!? 2. What are we up against? 3. Gather the Data 4. Gather the Troops 5. Take Action 6. Monitor Results WE DID IT! © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 3. hrgpros.comIncredible People | Extraordinary Results WHY!?!?!? Claims recovery is complex! (This is the EASY Answer) © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 4. hrgpros.comIncredible People | Extraordinary Results  Ever-changing Government Regulations  Insurers tightening their belts  Lack of communication between Patient Financial Services & other departments [This is the REAL Answer] WHY!?!?!? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 5. hrgpros.comIncredible People | Extraordinary Results Before a claim reaches the billing team it may have been touched by upwards of 25 different people [Whoa! That is a lot of people!] WHY!?!?!? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 6. hrgpros.comIncredible People | Extraordinary Results Charge Master Lab Registration Utilization Review ABN’s Authorizations Referrals Occupational Therapy RespiratoryTherapy WHY!?!?!? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 7. hrgpros.comIncredible People | Extraordinary Results They did it! When there are so many people/departments contributing to each claim it naturally leads to finger pointing WHY!?!?!? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 8. hrgpros.comIncredible People | Extraordinary Results What are we up against? On average 10% (or $262 billion) of claims billed Nationwide are denied upon 1st submission 10% 1.Independent study utilizing 2016 claims data Claims Denied © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 9. hrgpros.comIncredible People | Extraordinary Results What are we up against? 90% (or $236 Billion) of the annual $262 Billion in denied claims were preventable 90% 1.Independent study utilizing 2016 claims data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 10. hrgpros.comIncredible People | Extraordinary Results What are we up against? 1.MGMA Study 2.Advisory Board Study 3.Independent study utilizing 2016 claims data $262Billion $165Billion $107Billion $- $50 $100 $150 $200 $250 $300 Total Denials Recoverable Denials Werent Recovered Billions © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 11. hrgpros.comIncredible People | Extraordinary Results Always Remember: 1. Receipt of a denial does not necessarily mean lost reimbursement, but it always means additional labor 2. Denials will NEVER be completely eliminated What are we up against? 1.MGMA Study 2.Advisory Board Study 3.Independent study utilizing 2016 claims data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 12. hrgpros.comIncredible People | Extraordinary Results The best practice target denial rate is 5% What are we up against? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 13. hrgpros.comIncredible People | Extraordinary Results Denial Rate Formula: Total number of claims denied Total number of claims remitted = Denial Rate (If claims remitted data is not available, claim submission data can be used in its place) 1.HFMA Key Maps What are we up against? © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 14. hrgpros.comIncredible People | Extraordinary Results HELP! Gather the Data Key data elements for Denial Tracking:  Date Denied  Payer  Denied Amount  Denial Reason  Action taken to resolve © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 15. hrgpros.comIncredible People | Extraordinary Results HELP! Condition the denial data into root-cause areas Example Root Cause Areas: • Billing • Coding • Registration/Authorizations • Additional Info Requested • Contract/Credentialing • Patient Care/Utilization Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 16. hrgpros.comIncredible People | Extraordinary Results HELP! HRG 2019 cumulative denial data from 100+ facilities showed: - Billing 25% - Coding 9% - Registration/Authorizations 39% - Additional Info Requested 16% - Contract/Credentialing 4% - Patient Care/Utilization 7% Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 17. hrgpros.comIncredible People | Extraordinary Results Billing 25% of overall denials The top 3 reasons: 1. Duplicate claims 2. Untimely filing 3. EOB from primary required Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 18. hrgpros.comIncredible People | Extraordinary Results Gather the Data Coding 9% of overall denials The top 3 reasons: 1. Service included in another procedure 2. Diagnosis/CPT Code related denial 3. Invalid value/occurrence code or Modifier © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 19. hrgpros.comIncredible People | Extraordinary Results Registration/Authorizations 39% of overall denials The top 3 reasons: 1. Authorization missing/invalid 2. Coordination of benefits 3. Patient not eligible on date of service Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 20. hrgpros.comIncredible People | Extraordinary Results © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 21. hrgpros.comIncredible People | Extraordinary Results Additional Information Requested 16% of overall denials The top 3 reasons: 1. Medical Records Requested 2. Accident information requested 3. Physician sign off required Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 22. hrgpros.comIncredible People | Extraordinary Results Contract/Credentialing 4% of overall denials The top 3 reasons: 1. Physician not credentialed 2. Physician credentialed incorrectly 3. Not contracted with payer Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 23. hrgpros.comIncredible People | Extraordinary Results Patient Care/ Utilization Review 7% of overall denials The top 3 reasons: 1. Medical necessity not established 2. Plan limit exceeded 3. Max benefits paid Gather the Data © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 24. hrgpros.comIncredible People | Extraordinary Results Take Action 1.Create a “Denial Committee” that includes a team member from each root cause area 2.Schedule a monthly committee meeting 3.Each month, review the denial data as a team 4.Identify which denials will be the area of focus [typically the top 5 - 10] 5.Assign an owner for each of the chosen denials © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 25. hrgpros.comIncredible People | Extraordinary Results Measure Results 1. Distribute denial details each month, prior to the committee meeting 2. Each department should address their progress 3. CELEBRATE positive movement! © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 26. hrgpros.comIncredible People | Extraordinary Results ExampleReports © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 27. hrgpros.comIncredible People | Extraordinary Results ExampleReports © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 28. hrgpros.comIncredible People | Extraordinary Results ExampleReports © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 29. hrgpros.comIncredible People | Extraordinary Results ExampleReports © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 30. hrgpros.comIncredible People | Extraordinary Results Measure Results During the denial prevention process, you may find common payer related claim denials/delays Creating a Payer Scorecard can assist in resolving any payer related issues discovered during the denials process © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 31. hrgpros.comIncredible People | Extraordinary Results Measure Results Common Payer Scorecard Metrics  Average time to pay  Denial Rate  AR Days  Payment Accuracy © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 32. hrgpros.comIncredible People | Extraordinary Results Take Aways: 1. Gather the Data 2. Gather the Troops 3. Take Action 4. Monitor Results Follow these steps and… © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 33. hrgpros.comIncredible People | Extraordinary Results You WILL Conquer your denials Take Aways: © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 34. hrgpros.comIncredible People | Extraordinary Results Over every mountain there is a path, although it may not be seen from the valley -Theodore Roethke © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED
  • 35. hrgpros.comIncredible People | Extraordinary Results © 2020 Healthcare Resource Group, Inc ALL RIGHTS RESERVED