What are Lag Days?
In every medical practice, one of the crucial factors for success is managing finances effectively. Lag days refer to the time between providing a service and submitting a claim for payment.
Why track Lag Days?
Tracking lag days is vital for healthcare practice owners and finance teams because they directly impact revenue flow. It’s ideal for staff to input charges within 24 hours of service to ensure efficiency. When lag days extend beyond this, it takes longer to receive payments from insurance companies through clearinghouses.
For example, if there’s a 3-day delay between a patient’s appointment and claim submission, it will take longer to receive payment, especially if the insurance company requires additional review time. This delay not only affects payment timing but can also lead to underpayment or claim denial if there’s a deadline for filing claims.
Best Practices to Improve Your Lag Days:
- Efficient Charge Entry Ensure that staff enter charges promptly, ideally within 24 hours of providing the service, to minimize lag days
- Documentation Implement efficient documentation processes to capture all necessary information accurately and promptly after each patient encounter
- Clear Communication Foster clear communication between clinical and administrative staff to ensure timely documentation and charge entry
- Staff Training Provide training to staff on efficient charge entry practices and the importance of timely documentation for revenue cycle management
- Address Denials Promptly Develop a process to address claim denials promptly, including timely resubmission of corrected claims to minimize delays in reimbursement
- Payer Collaboration Establish effective communication channels with payers to address any issues or delays in claims processing and reimbursement
At Globe Centrix, we help practices by reducing their lag days to boost revenue processes and increase reimbursement rates.