Neil H. Baum, MD, presented “Bottom Line Shrinking? Check Your EOBs” for the Grand Rounds in Urology audience in March 2022.
How to cite: Baum, Neil H. “Bottom Line Shrinking? Check Your EOBs.” March 2022. Accessed Apr 2024. https://grandroundsinurology.com/bottom-line-shrinking-check-your-eobs/
Bottom Line Shrinking? Check Your EOBs – Summary
Grand Rounds in Urology Contributing Editor Neil H. Baum, MD, Professor of Urology at Tulane Medical School, discusses the importance of reviewing explanations of benefits (EOBs) in a medical practice to ensure the practice is receiving appropriate compensation. He defines EOBs as feedback on the effectiveness of a practice’s billing/coding, and argues that failing to review EOBs will result in a decrease in cash flow. Dr. Baum claims that reviewing EOBs strengthens management of the billing team and helps practices know why they are or are not successful, since “what gets measured gets managed.” He gives the example of an overwhelmed biller who failed to submit 10% of claims for 12 years and rarely appealed denials. By reviewing EOBs, Dr. Baum explains, the managing partner can identify the problem and gather proof that billing needs improvement. He discusses several other benefits of reviewing EOBs, noting that EOBs show deficiencies and how to correct them, as well as provide tracker data on a practice’s payor mix and frequency of highly paid procedures. Dr. Baum recommends that practices review EOBs approximately every three months, using an exception report to track any deviation in compensation. He says that doing so will take little more than an hour per month and help practices ensure they are paid what they deserve in an era of decreasing reimbursements and increasing overhead expenses.
For more commentary on practice management from Dr. Baum, visit his Improving Your Urology Practice page.
