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KZA Insights: How to Prevent Inappropriate Contractual Adjustments

oftentimes I see physicians leaving

money on the table when they don't even

realize it most of time it's because

somebody in the billing office has

written off to contractual adjustment I

call the contractual adjustments the

black hole of contractual adjustments

because once we write something off to

contractual adjustments we never look at

it again one of the things I like to

look at is if there were charges written

off a hundred percent to contractual

adjustments sometimes it's not just one

report we're pulling a couple different

reports from the practice management

system combining them together and

looking for where the charge equals the

contractual adjustment often times what

I find is is that we've written off

amounts that should have been appealed

for example an office visit with a

procedure an office visit with an

injection an office visit with the room

and removal we believe that staff

respect what management inspects so our

advice is to every month take 1000 bees

and go back and audit them and make sure

that they were appropriately posted into

the system secondly I would also

recommend at least on a quarterly basis

doing that type of analysis that were

looking at were there charges that were

written off a hundred percent to

contractual adjustments