Medical Billing and Collections for Drug Rehab Centers
Accounts receivables can grow fast, and before you know it they are in the millions. The majority of billing companies take the “low hanging fruit” , that means easy collections. Once a claim reaches 3 months old, the billing service will call once a month to check the status. This is how the addiction treatment centers are paid by insurance benefits.
“Our first experience owning an intensive outpatient rehab program was challenging due to the billing issues. We tried using 4 different services that specialized in medical billing for addiction treatment centers. After doing our own in house billing, we changed to company A. At first it is always positive. You start seeing money coming in and everyone is happy. A few months go by and our AR has grown to 4 million dollars. Working on older claims for substance abuse programs is very time consuming, and no billing company has adequate staff to collect the past claims.”
Health Insurance Claims for Addiction Treatment eventually are Collected.
Unless you have a hard collections specialist, millions of dollars owed to a substance abuse treatment facility will never be collected. ” Until we hired Allen, to work old claims, our old AR continued to grow. His only duties are calling insurance companies and demanding our money. He is an ex marine officer and that personality is necessary for this job. Polite and respectful, but very aggressive.” It may take 3 hours on one phone call regarding an insurance claim for addiction treatment or detox. Billing companies can not use staff in this way.
Billing For Outpatient Detox Center
Blue Cross often changes the billing format for addiction treatment Centers. For instance, inpatient drug rehab is billed on a facility form while outpatient detox is billed on a medical practice form. Substance Abuse facilities must keep up with many different numbers like 3 digit billing codes. Insurance companies do not inform addiction treatment centers or billing companies about these changes. You find out when you do not get paid. We were waiting for our BCBS payments for outpatient detox for the whole month January when we finally figured out one small change in the billing form.
In 2015 Insurance companies including Aetna and Blue Cross put caps on testing. Drug rehab centers must do urine testing on patients. Millions were made from UA tests for years and some substance abuse treatment facilities opened their own in house urinalysis laboratories. Aetna only pays for 8 tests per year, but most treatment centers do 3 urinalysis screens per week. Blue Cross Blue Shield allows for only 20 screens per year. There are a variety of other health insurers that still pay addiction treatment programs for unlimited. testing