The following is a truncated excerpt of an article by The Morning News, which illustrates the frustrations and challenges encountered in the medical billing industry. This is only an excerpt.
Medical Billing No Easy Chore
Complicated System Frustrates Patients, and Doctors
This article was published on Saturday, September 23, 2006 5:24 PM CDT in Business
By John L. Moore
The Morning News
Clarindia Elliott was treated at Gravette Medical Center in 2003. A few weeks ago she got two bills from a collection agency for $71.05 and $55. Not a lot of money, but she couldn't believe it. The bills should have been sent to Medicare and BreastCare of Arkansas and paid years ago. Eliott said she never received a hospital bill at the time. Now, a collection agency is coming after her for money she’s pretty sure she doesn’t owe.The services for those bills happened so long ago, she’s not even sure exactly what they were for. Elliott said she is refusing to pay the bills until the collection agency can prove she owes them.
BILLING ERRORS
In 2003, Consumer Reports surveyed 23,000 people on satisfaction with hospital stays and of the 11,000 people who reviewed itemized bills of their hospital stay, 5 percent found major errors. Those patients with out of pocket expenses of $2,000 or more were twice as likely to find billing errors, according the report. Those errors may be built into the system at some medical facilities, said Nora Johnson, a medical billing advocate.
Hospitals and independent physicians all have their own set of policies regarding payment. Some allow payment plans and some don't. Some will send the bill to an outside collection agency sooner than others. St. Mary’s Hospital in Rogers, for example, does offer interest-free payment plans for patients, Shepphard said.
“A lot of hospitals want a lot of money in advance, before you leave,” Johnson said. “Patients need to know, if they are insured, that they are responsible for the deductible, but anytime they’re asking for anything outrageous, you need to make the hospital put it in writing.” Johnson said that asking them to put it in writing and have a hospital official sign it will help insure that the money they’re asking for is appropriate, she said. Those bills that come years afterward, often from a collection agency can be the most frustrating for patients, Johnson said.
Addressing the Issues
Billing mistakes can be costly. Medical billing and collection problems on behalf of the patient, or the physician's office are not uncommon. They usually happen as a result of oversight, error, or unfortunately in some cases as a result of incompetence. Billing patients, health insurances and Medicare/Medicaid for medical services involves a complex system of numerical codes for various diagnoses and procedures. Reimbursement is based on coordinating and properly submitting those codes. Cash flow and financial success depends on proper reimbursement. Rejected claims can be costly and frustrating!
Mistakes Best Avoided From The Start:
Mistakes in medical insurance billing can be frustrating. Health care providers depend on their reputation. When coding and billing mistakes occur they will lead to complications, frustrations and often serious complaints. Needless to say, medical coding and billing mistakes are best avoided from happening in the first place!

Diligent Follow-up
Upon discovering improper payments, billing mistakes, or alleged misconduct, all pending issues must be addressed as competently and as quickly as possible. The sooner these issues are dealt with and resolved, the better, to avoid unnecessary (further) reimbursement delays, or possible practical, possible legal issues.
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