The Importance of Prompt Pay for Medical Professionals

Jul 15, 2017 by

The Importance of Prompt Pay for Medical Professionals

You are a medical professional who is working diligently. Then comes a patient who is not going to pay anything and rely on his insurance. Of course, this should not be a problem, because you know for sure that the insurance is going to pay you anyway.

But it is important to remember that insurance is a business, so companies will do everything they can to minimize costs. One way to do this is by delaying the payments to the medical professionals who have catered to the needs of the insurer’s clients.

It is a good thing that there is a legal concept that require these entities to pay their dues on time, and this is called prompt pay. According to the website of Williams Kherkher, prompt pay claims may result into different actions, such as full coverage of the medical bill, audit requirement for coverage, or partial or total denial of coverage with appropriate reasoning. If the insurance company fails to do any of these in a given period, they may be subject to further legal action.

Prompt pay is an important legal concept because of a variety of reasons. First, it assures medical professionals and healthcare providers will get the money they deserve for working hard. Second, it keeps these professionals and providers in business, especially because a large volume of delayed payments can give them financial hardships. Third, it motivates these professionals and providers to deliver better services, because they know that they will easily get paid and at the same time experience the satisfaction of helping a patient.

Fourth, and perhaps the most important of all, it prevents insurance companies from abusing the power of their clients to receive advanced medical care even though the companies can delay the actual payments to the medical care provider. In other words, prompt pay forces these insurers to legally and morally pay their dues on time.

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