Unclaimed Revenue: The Charges Most Mental Health Practices Overlook

Unclaimed Revenue: The Charges Most Mental Health Practices Overlook

Running a successful mental health practice involves more than providing exceptional care to your patients; it also requires careful attention to your billing practices. Unfortunately, many mental health practices inadvertently leave money on the table by failing to bill for certain services or by not following up on critical payment processes. This post will highlight some of the most commonly overlooked charges that can significantly impact your practice's bottom line.

1. Charging for Non-Professional Services

One of the most common oversights in mental health billing is not charging for non-professional services. For example, processing medical records for disability companies or other third parties is a time-consuming task that often falls to your administrative staff. Despite the effort involved, many practices fail to bill for this service. According to HIPAA regulations, you are allowed to charge a reasonable fee for the cost of copying and mailing these records. Not billing for this service can result in missed revenue opportunities that can add up over time.

2. Collecting Co-Pays and Co-Insurances

Co-pays and co-insurances are critical revenue streams for any healthcare practice, yet many mental health practices do not consistently collect them. This might be due to oversight, a desire to provide care without financial barriers, or a misunderstanding of the legal requirements. However, it's important to remember that, as a healthcare provider, you are legally obligated to collect these payments. Failure to do so can result in compliance issues and lost revenue. Implementing a strict policy for collecting co-pays and co-insurances at the time of service can help ensure your practice remains financially viable.

3. Charging Credit Card Fees

Many practices absorb the cost of credit card processing fees, which can range from 2% to 4% of each transaction. Over time, these fees can significantly cut into your practice's profit margins. While it may seem easier to absorb these costs to avoid inconveniencing patients, passing the fee onto the patient is a common and legally permissible practice. By transparently informing your patients about these fees, you can recoup these costs and improve your practice’s financial health.

Conclusion

Neglecting to bill for all possible services, failing to collect co-pays and co-insurances, and absorbing credit card fees are just a few of the common financial missteps that mental health practices make. By being proactive and implementing policies that address these issues, your practice can improve its financial stability and continue providing high-quality care to your patients.

Taking a closer look at your billing practices and making necessary adjustments can ensure that you are not leaving money on the table. By doing so, you are not only securing the financial future of your practice but also reinforcing the sustainability of the important services you provide to the community.

This post provides general information and is not a substitute for legal or financial advice. For specific guidance on billing practices, consult with a legal or financial professional.