Why is timely communication with health plans critical during point of service collections?

Timely communication with health plans during point of service collections is critical mainly because it plays a fundamental role in preventing claim denials and ensuring payment. When healthcare providers communicate effectively and promptly with health plans, they can clarify coverage details, verify patient eligibility, and ensure that all required authorizations are in place before services are rendered. This proactive approach reduces the chances of misunderstandings or lapses that could lead to claim denials after services have been delivered. Additionally, timely communication allows providers to set accurate patient expectations about their financial responsibilities and potential out-of-pocket costs, which is essential for facilitating collections at the point of service. This reduces administrative burdens and enhances overall revenue cycle efficiency.