7 Common DME Billing Mistakes to Avoid

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Table of contents

• Introduction
• Coding Errors
• Faulty Document Management
• Regulatory Challenges
• Denials due to AR Management
• Failure to Verify Coverage
• Trailing Billings
• Untrained Staff
• Conclusion


DME billing can be an overwhelming and challenging task. With the constantly changing regulations and coding guidelines, it’s easy to make mistakes that can lead to claim rejections and lost revenue. In this blog, we’ll discuss the seven most common DME billing mistakes to avoid. From coding errors to faulty document management, we’ll guide you through how to overcome these challenges and streamline your billing process. So if you’re tired of denials and collections, sit back, relax and let’s dive in!

Coding Errors:

Proper coding is essential to ensure that healthcare providers get reimbursed for the services they render. Unfortunately, there is a lack of streamlining in the Healthcare Common Procedure Coding System, which results in healthcare providers failing to get reimbursed. This often happens due to using incorrect modifiers, failing to check payer and coding reports, and unclear narration. To mitigate these coding errors, healthcare providers must streamline HCPCS codes and use the correct codes for respiratory failure, trauma, and fracture diagnosis. Moreover, documenting all components, devices, and materials used in the medical equipment is crucial.

In summary, proper coding helps healthcare providers get reimbursed and ensures that there are accurate records for all equipment provided.

Faulty Document Management

Managing innumerable documents every day is no easy feat for DME businesses. Therefore, digital document management systems are vital for keeping track of and retrieving critical business information. Using a legacy system for documentation can result in poor or incorrect documentation, leading to claim dismissals, business data loss, and reduced revenue.

But fear not, with the right digital document management software in place, DME billing can be efficient and streamlined. Say goodbye to drowning in paperwork and hello to optimized document storage and retrieval. Let’s face it, who wants to deal with claim dismissals due to faulty document management? Not us, that’s for sure!

So, let’s take a step towards a smoother billing process by embracing digital document management systems. It’ll save us precious time, prevent claim dismissals, and reduce stress levels. Plus, we can put our focus back on improving patient care and growing our business. Sounds like a win-win to us!

Regulatory Challenges:

Ah, the complex and ever-changing world of regulations. If you thought you could escape them, well, think again. DME billings are no strangers to regulatory challenges. In fact, it’s a nightmare.

Firstly, the regulatory system for DMEs is quite complex. There are so many changes that keep happening that it’s hard to keep up with. And, if you fail to stay updated with these latest changes, then it can lead to consequences, the kind of consequences you don’t want.

Medicaid and Medicare Services also come into play here, making things all the more difficult. Considering the rigorous regulatory system in place, DME services often get into difficult situations.

The bottom line is that regulatory challenges can severely impact DME billing and reimbursement for the services. So, make sure you stay updated with the latest changes because you don’t want to be left behind, do you?

Denials due to AR Management

Denying claims is one of the many challenges faced by DME services. Sloppy AR management leads to incorrect or incomplete billing information which can result in an increase in denials. It negatively affects the revenue streams and makes it more challenging for service providers to manage the cash flows. Not managing the AR correctly can lead to a collection rate burden, and without proper data analytics, the situation will worsen even further. For a successful DME billing process, it is crucial to have a system in place for efficient AR management. It involves training staff on the proper claim management process and ensuring that billing information is up-to-date and accurate. The consequences of failing to do so can lead to loss of revenue and can even put the service provider out of business. Always remember: proper AR management equals proper revenue management.

Failure to Verify Coverage

Let’s start with the basic requirement of any healthcare billing- verifying coverage. Standards and practices may differ in every part of the globe, but fundamentally, coverage verification is a crucial step. It is the first and necessary step for a successful DME billing process. The physician must prescribe DME that is needed for the clinical treatment, and the DME provider must verify whether the patient’s plan covers the services and equipment. However, failure to verify the plan coverage can result in denial of claim. The consequences of such a mistake can be financially disastrous.

Imagine serving a patient, delivering the equipment, investing in it, and then failing to bill it. Imagine waiting to receive payments for a long time and then finding out that the claim was rejected because the coverage could not be verified. It can lead to a total financial loss, which is sad and discouraging. Hence, it is paramount to ensure that it is done right.

To verify the coverage, it is important to establish communication with the payers. Verification should also be done every time there is a new patient and before the equipment is delivered. In some cases, a pre-authorization may be required before starting the DME billing process. In addition, every time there is an equipment change or modification, coverage verification should be done to avoid denials.

To avoid such a mistake, one must keep in mind the risks of not thoroughly verifying coverage. Always remember that being careful and thorough in the verification process can save the provider from a lot of frustration and financial loss.

Trailing Billings

Billing on time is crucial for all DME service providers as it plays a significant role in cash flow. Without cash in hand, providers may have to resort to shortcuts such as underpayment or ignoring the verification process, leading to complexities and more denials. To catch up with the shortfall, service providers often resort to other measures, like billing inaccurate amounts. Unfortunately, this leads to an increased burden in collections, which further deteriorates the handling of denials.

The stress builds up as the management fails to follow up on the denials leading to a lack of data for analytics and, in turn, more trailing analytics. It leads to more problems such as how to prevent them. Failing to maintain timely billing only leads to more complexities and less revenue in the long run.

The collection burden increases, leading to more errors and trailings in billing. Unfortunately, there is no quick fix for such mistakes. To avoid these mistakes, DME service providers need to manage their billing process efficiently.

So, it’s essential to provide a system that can streamline your billing process and avoid any uncertainties of cash flow.

Untrained Staff

Let’s face it, the medical industry is already burdened with an overwhelming amount of work, leaving little time for any additional activities. Despite this, it’s crucial for DME businesses to train and educate their staff on the latest compliance policies and guidelines. This is where things become tricky.

When staff members don’t receive proper training, it results in erroneous billing and coding, which further leads to claim denials. The revenue and claim management staff isn’t given adequate time to learn and adapt to new rules and regulations, further complicating the situation. All of this negatively impacts the business’s bottom line.

Now, one might think that with such a dynamic and ever-evolving industry like DME billing, staff education and training would be a top priority. However, this is not always the case.

To avoid such a scenario, proper training sessions, regular updates, and timely education are the need of the hour. A business that invests in its staff sees better outcomes, smoother billing processes, and eventually significant financial gain. So, train your staff and let them propel you to the top!

Remember, the only constant in life is change. The same applies to the DME industry as well; policies and procedures are updated frequently, and it’s essential to stay up-to-date to avoid compliance issues down the line.


Managing DME billing can be challenging for providers due to coding errors, faulty document management, regulatory challenges, denials due to AR management, failure to verify coverage, trailing billings and untrained staff. To overcome these challenges and optimize the revenue cycle, it is essential to outsource DME billing services and partner with experts who can provide a streamlined end-to-end solution. At 24/7 Medical Billing Services, we offer integrated technology platforms and a team of experts who can help you drive the business better. So, avoid these common mistakes and invest in a reliable DME billing service to stay ahead of competition and maximize your revenue.

Wenour offers expert guidance in these areas, empowering healthcare providers to overcome challenges, optimize reimbursement, and deliver the best standards of care to their patients. By adhering to compliance and regulatory guidelines, mastering meticulous documentation, exploring coding systems, and embracing innovative digital solutions, healthcare providers can achieve favorable reimbursement results and financial stability. With Wenour’s support, the complex world of DME billing can be simplified and patient care and financial success prioritized.

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