Managing Prior Authorization in Health Care – Important Issues
Prior Authorization is one of the steps of the healthcare revenue cycle. Its core function as a business task is obtaining medical services order from payers by the provider prior to delivering services, procedures, and dispensations. Although the aim here is to curb expenditure while ensuring a medically appropriate treatment, it often turns into a hurdle delaying treatment and decreasing practice revenue, which in effect accentuates the problem. The concept of PA can seem daunting but when dissected all its elements, it allows for the efficient operation of healthcare systems. For providers, PA is not a checkbox issue; rather it is one of the elements of timely care, revenue assurance, service assurance trust. This guide will reveal the nuances, challenges and suggestions for PA Management. What is the Purpose of Prior Authorization? Ensuring Cost Management Efficiencies: PAs are meant to avert the abuse of expensive therapies and medications. Before friction is incurred, they use PA to scrutinize claims. There is a distinct possibility that only medically necessary procedures are authorized. Enhancing Client Protection: PA encourages procedures that are evidence-based and therefore avoid procedures that are unnecessary or provide no benefit. There are better prospects of being paid because PAs that are approved cost practices that use them less. Denied claims due to inadequate PAs can cause major cash flow problems. PA is crucial for balancing cut cost measures and the provision of quality health care services. However, its implementation is limited and faces many challenges that irritate providers and patients in equal measures. Primary Hurdles In Prior Authorizations 1. Advanced and Unpredictable Changes in Requirements The payer changes the requirements for particular procedures and diagnosis and may alter them at any point. Each payer has their own set of requirements and they change these at regular intervals, turning compliance into a moving target. Providers become obliged to devote resources in order to verify these co does and change their processes. 2. Strain Linked To Operations Management The sheer volume of PAs done manually and the associated paperwork creates massive administrative work. Each physician spends on average 14.9 hours every week per physician for doing PA processes, as noted by the AMA. Non Revenue activities only serve to further increase operational costs to the practice and this is Net attention that has been diverted away from patient care. 3. Denial Of Claims Across Providers Denial of thoroughly filled requests for PA results in waroused accomplishments which need to be deciphered and reinstated. Denials not only serve as barriers to patient care , but also translate to unnecessary increase of workload of Admin staff. 4. Outdated Technology Many providers still do not have the modern technologies that aid efficiently and effectively work flow management of other non-core activities like the ease use of PA processes. These outdated practices like the telephone and fax communications further lead to substandard productivity and predisposing inaccurate orders. 5. Patient’s Perspective And Trust In The System Delays in approving PAs may adversely affect patients’ trust within the system. It is hard for a patient to assume that a provider who fails to act or defer his or her course of action is inactive or disorganized, especially when the hindrance to action is at the pecuniary payer end. How to Improve Prior Authorization 1. Utilize Technology Work with Electronic Prior Authorization (ePA): The construction of ePA and its integration into EMR/EHR speeds up the approval processes very fast. ePA permits the automated submission of documents, tracking of requests, and systems which provide real time updates on the status of requests. Predictive analysis could mitigate foreseeable obstacles for PA submissions, while machine learning assists in evaluating historical data and flagging improves submissions. 2. Establish a Competent Workforce Bear in mind the inclusion of billing staff training for provider specific coverage guidelines, medical necessity, and documentation. Designate one or two employees to dedicate their time for management PA. These liaisons enable providers to interact more effectively with payers. 3. Improve Record Keeping Carefully document every detail regarding a patient’s medical history, medical necessity, and even the diagnostic codes to satisfy the payer. Missing or incorrect information are the top factors why claims get denied. It is recommended that templates and checklists be used and encouraged to provide standardization and compliance with payer requirements to reduce errors. 5. Oversight Communication Make sure to maintain contact with the payers for approval while outlining the PA criteria and any changes which may be needed in advance. Letting patients in on the process is good policy as it allows them to appreciate the internal workings of your practice. Involving patients beforehand in the PA could also lead to higher satisfaction levels. 6. Monitor and Review Performance Targets Ensure these are monitored: Approval time, denial rate, resubmission rate, and time on PA work. Bottlenecks need to be identified through regular data analysis and corrective measures taken. Tactical workflow reengineering could be planned and put in place as a result of data analysis. 7. Outsource PA Functions In case a practice is under resourced, PA management can be outsourced on a contract basis to enable achievement of desired results. This allows for specialist service providers to apply their resources, expertise, and facilities to the resolution of huge volumes of PA requests. Developing Patterns in Prior Authorizations 1. Automation and AI The development of highly advanced technology witnessed by the industry has impacted PA. New automated software applications are able to use historical references to predict the likelihood of payer approvals and, in turn, raise success rates. As an example, fillable AI that is powered by Artificial Intelligence, and intelligent documentary verification tools can autonomously populate forms, verify documents, and flag discrepancies. 2. Cross-Industry Initiatives The Da Vinci Project is one such initiative that, along with many others, attempts to refine PA processes in order to narrow differences between payers. These collaborations create links between payers and providers for better communication and faster approvals. 3. Changes in Government Policy Prior Authorizations are expected to change as