Top 5 Medical Billing Mistakes That Hurt Your Practice—and How to Avoid Them

Top 5 Medical Billing Mistakes That Hurt Your Practice—and How to Avoid Them

Medical billing is the backbone of any healthcare practice. When done correctly, it ensures timely payments, compliance, and a healthy revenue cycle. But when mistakes happen, they can lead to delayed reimbursements, claim denials, and even compliance risks—all of which impact your bottom line.

The truth is, most billing errors are preventable. In this article, we’ll explore the five most common medical billing mistakes and share practical tips to help you avoid them.

1. Incorrect Coding

Coding errors are one of the leading causes of claim denials. Whether it’s using outdated CPT or ICD codes or applying the wrong modifiers, these mistakes can result in rejected claims and lost revenue.

Why It Happens:

• Frequent updates to coding guidelines

• Lack of staff training

• Manual entry errors

How to Fix It:

• Stay current with coding changes through regular training

• Use certified coders or outsource to a professional billing service

• Implement software that flags potential coding errors

2. Missing or Incomplete Patient Information

Something as simple as a missing insurance ID or incorrect date of birth can cause a claim to be rejected. These small errors often slip through the cracks during busy office hours.

Why It Happens:

• Incomplete intake forms

• Lack of verification before submission

How to Fix It:

• Create a verification checklist for patient data

• Double-check insurance details before claim submission

• Use electronic health record (EHR) systems to reduce manual errors

3. Late Claim Submissions

Every payer has strict deadlines for claim submissions. Miss those deadlines, and your claim is automatically denied—no exceptions.

Why It Happens:

• Overloaded staff

• Manual processes that slow down billing

• Lack of tracking systems

How to Fix It:

• Automate claim submissions with billing software

• Set reminders for filing deadlines

• Outsource billing to ensure timely processing

4. Poor Denial Management

Denied claims aren’t the end of the road—but many practices fail to follow up. Ignoring denials means leaving money on the table.

Why It Happens:

• No dedicated staff for denial follow-up

• Lack of tracking and reporting systems

How to Fix It:

• Track all denials and categorize reasons

• Create a structured appeal process

• Partner with a billing service that specializes in denial management

5. Lack of Compliance

HIPAA violations or failure to follow payer-specific rules can lead to penalties and reputational damage. Compliance isn’t optional—it’s essential.

Why It Happens:

• Outdated processes

• Inadequate security measures

• Lack of staff training

How to Fix It:

• Regular compliance audits

• Use HIPAA-compliant billing software

• Work with a billing partner that prioritizes security and compliance

The Cost of Billing Mistakes

Billing errors don’t just cost money—they cost time, resources, and peace of mind. For small practices, these mistakes can be especially damaging, leading to cash flow issues and administrative burnout.

How Oswego Medical Billing Solutions Can Help

At Oswego Medical Billing Solutions, we specialize in helping Oregon healthcare providers reduce claim denials, improve cash flow, and stay compliant. Our services include:

• Insurance claim submission & tracking

• Patient billing & statement management

• Denial management & appeals

• Coding compliance & audit support

With HIPAA-compliant processes and personalized solutions, we make revenue cycle management stress-free—so you can focus on patient care.

Ready to Simplify Your Billing Process?

Contact us today for a free consultation and discover how we can help your practice thrive.

www.oswegombs.com

503-345-4987