What Is Claims Scrubbing? Prevent Denials and Secure Revenue with Predictive Analytics

Lynn H.

December 30, 2024

5 min read

Introduction

Did you know 9% of healthcare claims are denied, costing hospitals $5 million annually? If you're struggling to reduce claim denials, this guide will show you how Ember Copilot, the advanced claims scrubbing tool, can help.

What Is Claims Scrubbing and Why Does It Matter?

Claims scrubbing is your first line of defense in the revenue cycle process. Think of it as a spell-checker for your healthcare claims—it scans for errors and inconsistencies before submission, ensuring your claims are accurate and compliant. Without proper scrubbing, claims often face denials due to common errors that cost healthcare providers billions annually. For example, surgical claims frequently face denials due to incorrect bundling—when procedures that should be billed together are mistakenly billed separately—or missing modifiers, such as failing to indicate laterality (RT or LT) for procedures like thyroidectomies.

Ember Copilot’s automated review system examines five critical areas where errors frequently occur:

  • Basic demographic information verification - catches mismatches between patient ID and insurance records, often caused by registration typos or outdated information
  • Procedure and diagnosis code validation - identifies bundling errors and missing modifiers, such as when multiple surgical procedures should be billed as a single comprehensive code, or when laterality indicators are required
  • Insurance policy compliance checks - flags services not covered under the patient's specific plan, often due to changes in coverage or policy limitations
  • Format and regulatory requirement confirmation - ensures claims meet each payer's specific submission format, preventing technical denials
  • Payer-specific rule validation - automatically applies complex billing rules and requirements across all claims, eliminating the need for manual code verification and reducing human error

Each validation step harnesses Ember's rules engine to apply both established billing rules and insights from billions of processed claims, automating what experienced medical coders know from decades of practice. This systematic approach helps prevent denials before they occur, protecting revenue and reducing the need for costly claim rework.

Top Challenges in Traditional Claims Scrubbing Tools

Despite its importance, traditional claims scrubbing falls short in several critical areas, leading to significant revenue impacts. For example, in surgical claims processing, traditional tools often miss complex bundling requirements that vary by payer:

  • Limited Predictive Capabilities: Traditional systems only flag known errors like missing modifiers, but can't predict when a thyroidectomy claim might be denied based on emerging payer patterns. This reactive approach means about 20% of "clean" claims still get denied.
  • No Pattern Recognition: While a traditional scrubber might catch a missing RT/LT modifier, it won't recognize that a specific payer has started denying all thyroid procedures without additional documentation. Ember's analysis shows that 35% of denials follow predictable patterns that basic scrubbers miss.
  • Payer-Specific Blind Spots: Traditional tools can't detect when different payers handle the same procedure differently. For instance, when one payer requires bundling multiple surgical codes while another allows separate billing, basic scrubbers often miss these nuances.
  • Isolated Workflow: When claims scrubbing operates in isolation, it misses critical context. For example, a basic scrubber won't know that a patient's insurance changed mid-treatment, leading to preventable denials.
  • Static Rule Sets: Healthcare requirements evolve constantly, but traditional tools can't automatically adapt. When CMS updates its bundling requirements, practices often face weeks of increased denials while manually updating their scrubbing rules.

The result? Even seemingly "clean" claims face denials, with practices spending an average of $118 per claim on rework costs. For a typical practice, this can mean thousands of dollars in preventable revenue leakage each month.

Introducing Ember Copilot: Going Beyond Scrubbing

Ember Copilot represents the next evolution in revenue cycle management. Unlike traditional scrubbing tools, it employs advanced predictive analytics to identify potential denials before submission. This revolutionary approach transforms your revenue cycle from reactive to proactive, ensuring maximum reimbursement with minimum effort.

Key Features and Benefits of Using Ember Copilot

Ember Copilot enhances your revenue cycle with:

Predictive Analytics

  • Machine learning algorithms that analyze millions of historical claims
  • Real-time denial risk assessment for each claim
  • Payer-specific pattern recognition

Workflow Optimization

  • Automated prioritization based on denial risk
  • Customized work queues for different team members
  • Integrated appeals management

Revenue Protection

  • Proactive denial prevention strategies
  • Automated correction recommendations
  • Continuous learning from your organization's claim history

Proven Results: Real-World Data on Revenue Improvement

Our analysis of millions of healthcare claims has revealed key patterns that impact denial rates:

Industry-Wide Patterns:

  • Seasonal variations significantly affect claim outcomes
  • Certain diagnosis code combinations carry higher denial risks
  • Specific claim types show consistent denial patterns
  • Timing of submission impacts approval rates

These insights have helped our clients achieve:

  • 35% reduction in initial denial rates
  • 48% decrease in rework time
  • $3.2 million average annual increase in collected revenue
  • 27% faster payment cycles

By understanding these patterns, healthcare organizations can take proactive steps to prevent denials before they occur, rather than just fixing errors after the fact.

Conclusion: Secure Your Revenue Cycle Today

In today's healthcare environment, basic claims scrubbing isn't enough. Ember Copilot provides the predictive intelligence you need to secure your revenue cycle and maintain financial health. By moving beyond traditional scrubbing to predictive denial prevention, you can significantly improve your bottom line while reducing staff workload.

Take the Next Step

Ready to see how Ember Copilot can transform your revenue cycle management? Schedule a meeting to see our solution in action.

Frequently Asked Questions

Q: How long does it take to implement Ember Copilot? 

A: Implementation typically takes 1-3 weeks, with minimal disruption to your existing workflows. Our team handles the integration and training.

Q: Will this replace our coding team? 

A: No. Ember Copilot enhances your team's capabilities by automating routine tasks, allowing your coders to focus on complex cases and strategic improvements.

Q: How does Ember stay current with coding changes? 

A: Our system automatically updates with new regulations, coding changes, and payer requirements, eliminating manual maintenance.

Q: What ROI can we expect? 

A: Most clients see ROI within 60 days through reduced denials and faster payments. Average first-year savings exceed $500,000 for mid-sized practices.

Q: Can Ember integrate with our existing EHR? 

A: Yes. Ember Copilot integrates seamlessly with all major EHR systems and practice management software.

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