In healthcare revenue cycle management, ensuring seamless payment processing is crucial for maintaining financial stability. One of the most impactful ways healthcare providers can improve cash flow and reduce administrative burdens when managing complex claims is by utilizing a lockbox solution specifically designed for Workers’ Compensation payments to accelerate workflow, automate appeals, and increase cashflow. Unified Health Services integrates a comprehensive lockbox solution into our End to End revenue cycle management solution that converts paper Explanation of Benefits (EOBs) into electronic 835 files, enhancing auto-posting and contract compliance.

What Is UHS’ Cash Management Solution?

UHS’ Solution is a secure, managed service that handles the receipt of payments, correspondence, and EOBs from payers. This solution helps practices determine the status of payments and claims for healthcare services, ensuring accurate and timely processing. This solution automates the conversion of paper EOBs into electronic formats, streamlining the payment process and supporting practices in managing payment accuracy for payers that often leverage leased networks to discount services while creating workflow barriers by not adopting EDI standards.

Key Features of the Cash Management Solution

Unlocking the full value of a cash management solution starts with the details. Using a Lockbox isn’t just about processing payments—it’s about transforming a traditionally manual, error-prone process into a streamlined, automated system that keeps revenue moving. Below are the core features that make the backend of our RCM service a unique and powerful tool for healthcare providers managing Workers’ Compensation claims.

• Paper-to-835 Conversion: All paper EOBs are converted into ANSI X12 835 files for seamless integration with providers’ systems.
• Enhanced EOB Normalization: The lockbox process modifies header-level responses to line-level details, enabling auto-posting and reducing errors.
• Network PPO Discount Identification: The lockbox extracts data from EOBs to identify PPO discounts applied during claim adjudication, ensuring accurate contract compliance.
• Secure Data Transfer: Files are typically delivered via SFTP but can also be sent to clearinghouses like SSI, Optum/Change/Relay, and Waystar.
• Minimized Provider Disruption: UHS accesses correspondence through the lockbox to avoid interrupting the provider’s workflow.

Why Leveraging a Lockbox When Partnering With a Complex Claims RCM Partner Matters for Workers’ Compensation Claims

Workers’ compensation claims often require more manual intervention compared to other financial classes. Billing errors and issues in the billing process can delay bills being paid by insurers, especially for work related injury claims. Paper EOBs, varying payer rules, and discrepancies in payment structures can create bottlenecks that delay cash flow and increase administrative costs.

The UHS Solution addresses these challenges by:

• Automating Appeals: By converting paper EOBs into standardized 835 files, providers can auto-post payments with greater accuracy, reducing manual errors that often lead to lost revenue. The lockbox solution helps revenue cycle partners  by reducing manual workflows, allowing for redeterminations and appeals to be submitted within 24 to 48 hours of receiving payment without requiring the provider to track down correspondence and documentation needed to submit appeals.
• Improving Cash Flow: Faster and more accurate payment posting ensures timely reimbursement, accelerating cash flow. The solution improves patient satisfaction by ensuring bills are accurate and paid in a timely manner, reducing risk for healthcare providers and improving management of patient accounts.
• Enhancing Contract Compliance: The lockbox solution identifies discrepancies in PPO discounts, ensuring that providers receive the correct payment amounts based on contract terms. Additionally, the lockbox supports reimbursements from insurers and helps practices avoid risk associated with delayed payments.

Case Study: Impact of the UHS Cash Management Solution

A Midwest health system faced challenges with delayed payments and manual EOB processing, resulting in increased administrative costs and extended days in accounts receivable (AR). By implementing UHS’s Lockbox Solution, the health system:

• Reduced Days in AR: Achieved AR days of less than 33 days.
• Enhanced Payment Accuracy: Improved auto-posting rates and reduced errors.
• Increased Cash Flow: Collected payments faster, leading to more predictable revenue streams.

How UHS Supports Providers Through a Comprehensive Cash Management Solution

UHS doesn’t just offer a lockbox—it provides a comprehensive service that includes ongoing support and optimization. Here’s how UHS ensures success:

1. Data Extraction and Enhancement: UHS’s proprietary process enhances EOB files for better auto-posting.
2. Secure File Delivery: Files are securely delivered to providers, ensuring compliance with data security standards.
3. Continuous Improvement: UHS conducts regular reviews to identify areas for process improvement, ensuring that providers see sustained benefits.

The Bigger Picture: Integrating a Lockbox Solution with Denial Management

The lockbox solution plays a critical role in reducing denial rates. By ensuring accurate payment posting and identifying discrepancies early, providers can address issues before they escalate into denied claims.

Integrating the lockbox with other revenue cycle solutions and RCM processes enables healthcare organizations to identify the root causes of denials, optimize billing, and improve overall revenue cycle performance.

In combination with UHS’s denial management services, providers can achieve:

• Denial Rates Below 2%: A significant reduction from the typical 15-30% denial rate for Workers’ Compensation claims.

The UHS Cash Management Solution is a game-changer for healthcare providers partnering with a Complex Claims RCM partner. By automating the conversion of paper EOBs to electronic files, and aggregating correspondence, it enhancing auto-posting capabilities, providers can reduce administrative burdens, improve cash flow, and ensure contract compliance, helping to recover underpayments and denied claims.

Ready to optimize your payment processes and reduce denials? Contact Unified Health Services to learn how our Lockbox Solution can transform your revenue cycle management. Request a Free Claims Assessment Today!