ISSUE 03 · WEEK 3 · MONTH 1
RCM Fundamentals — Billing & Denial Management
Electronic health records system

The 5 EHR settings your practice probably has wrong

(and what to change this week)

Most practices use about 40% of their EHR’s revenue-generating capabilities.

THIS WEEK IN PRACTICE

Two weeks in and a theme is emerging from your replies: denial management and patient collections are consuming the most energy. We’ll keep coming back to both.

This week we’re covering your EHR — specifically the settings most practices either never set up or set up wrong, and that cost real money in the form of missed claims, manual work that should be automated, and denial patterns your system could be catching before submission.

 

DEEP DIVE

Your EHR Is Doing Less Work Than It Should Be

The average independent practice uses roughly 40% of the capabilities built into their EHR and billing platform. The features they’re not using aren’t cosmetic — they’re the clearinghouse scrubbing rules, the eligibility verification automation, the denial analytics, and the payment posting exception workflows that exist precisely to reduce manual billing work and catch errors before they become denials.

Here is what this looks like in practice. A 4-provider internal medicine practice discovered their EHR had real-time eligibility verification available but never activated. They were verifying insurance manually at check-in — catching about 70% of issues. After activating auto-verification at scheduling (a 10-minute configuration change), their CO-27 (patient not eligible) denials dropped from $3,400/month to under $400/month within 60 days. One setting. $36,000 in annual recovered revenue.

40%

of your EHR’s revenue-generating capabilities are unused in the average independent practice.
These 5 settings close most of that gap.

CARC / Issue Root Cause Fix + Owner
CO-16 Technical Rejection — Claim field 24J pulling incorrect NPI from EHR. Fix: Audit Provider Profile settings and NPI crosswalk.
Owner: EHR Admin.
Target: Zero NPI rejections.
Technical Auto-posting errors — ERAs not matching open line items in system. Fix: Re-map transaction codes in Clearinghouse module.
Owner: Billing Manager.
Target: 95% auto-post accuracy.
CO-11 Outdated Library — EHR using deleted or invalid ICD-10 codes. Fix: Enable automatic quarterly ICD-10 library updates.
Owner: Clinical Lead.
Target: 100% coding compliance.
CO-197 Pre-auth Missing — EHR "hard stop" alert not configured for CPTs. Fix: Activate "Hard Stop" alerts for high-value procedures.
Owner: IT/EHR Support.
Target: Zero auth denials.

That table is your entire denial management strategy on one page. Pin it to your wall, share it in your Monday billing meeting, and update it on the first of every month.

The reason most practices underuse their EHR is not that the features are hidden. It is that EHRs are implemented under time pressure, the initial training covers core workflow and stops there, and nobody on the billing team has had dedicated time to explore what else the system can do. The advanced features get deferred and never revisited.

The five settings that make the biggest practical difference are almost universally under-configured:

Eligibility verification automation — most EHRs can run eligibility checks automatically the day before scheduled appointments. This is almost never turned on by default, and almost never configured after implementation. The result: staff running manual verification checks one patient at a time, or not running them at all.

Claim scrubbing rule sets — clearinghouses include edits that flag claims with common errors before the claim leaves your system. The default rule set catches major errors. Custom rule sets, configured for your payer mix and specialty, catch the ones that will actually get denied.

Denial code workflows — most billing systems can automatically assign denied claims to a worklist based on reason code, route them to the right staff member, and set a follow-up date. Without this, denied claims land in a generic queue worked in whatever order someone picks them up — which is often the wrong order.

ERA auto-posting thresholds — Electronic Remittance Advice can post payments automatically within configurable tolerance limits. Most practices either set this too tight (manual review of almost everything) or too loose (automatic posting of payments that should be disputed).

Reporting dashboards — virtually every modern billing system includes a dashboard showing denial rate, Days in AR, and clean claim rate. Most practice managers have never configured these or set target thresholds. The system will tell you when your denial rate is trending up — if you tell it what to look for.

 

THREE ACTION STEPS THIS WEEK

Complete each step before next Tuesday.

1

Log into your EHR or billing platform and navigate to Settings > Scheduling or Eligibility > Automated Verification. If the option exists (it does in AdvancedMD, Athena, Kareo, eClinicalWorks, and most major platforms), turn on automatic eligibility verification for appointments 24–48 hours before the scheduled date. Configure it to flag exceptions in a front desk worklist rather than silently passing or failing.

2

Call your EHR’s support team and request a claim scrubbing rule set review. Ask them to activate specialty-specific edits relevant to your practice, enable payer-specific edits for your top 5 payers by volume, and show you how to view the list of currently active edits. Most platforms have dozens of inactive edits that would catch real denial-causing errors. Your support team can activate them in a single session.

3

Build a denial management worklist inside your billing system. Target configuration: denied claims auto-assigned by reason code group (eligibility/auth, coding, timely filing, payer behavior), with automatic priority ranking by dollar amount and days to timely filing deadline. If your system cannot do this natively, your clearinghouse almost certainly can.

 

FIVE THINGS WORTH KNOWING

1

Physicians spend an average of 4.5 hours per day on documentation and EHR-related tasks — compared to 5.1 hours on direct patient care. Time physicians spend on administrative work is time not generating revenue. (AMA, 2023)

2

Practices that configure automated eligibility verification report a 35–50% reduction in front-end eligibility-related denials within 90 days of activation. (MGMA)

3

The average medical billing platform includes 47 standard claim scrubbing edits. Top-performing practices using specialty-configured custom edit sets have an average of 110+ active edits — more than twice the default.

4

ERA auto-posting rates vary dramatically: practices with properly configured thresholds post 85–92% of payments without manual intervention. Practices with default settings post 40–65% automatically, creating 2–3x the manual posting work for the same volume.

5

EHR vendors report that the average customer uses their support or training resources fewer than 3 times per year after initial implementation — meaning most practices have significant unrealized value in software they pay for monthly but don’t access.

 

BILLING CORNER

How to Use Your Clearinghouse Rejection Report to

Your clearinghouse generates a rejection report every time a batch of claims is submitted. Most billing teams look at individual rejected claims and fix them. Fewer look at the patterns across rejections — which is where the real diagnostic information lives.

Your billing team and EHR admin need this checklist.

FORWARD TO YOUR TEAM →

Step 1: Set up a weekly clearinghouse report review. In your clearinghouse portal, look for the rejection summary or edit report — the aggregate, not the individual claim list.

Step 2: Look for edits that appear more than 3 times in a week. A single claim rejected for a missing modifier is a one-time fix. Five claims rejected for the same missing modifier in one week is a workflow problem.

Step 3: For any edit appearing 3+ times, trace it to the source. Is it a specific provider? A specific CPT code? A specific payer? A specific staff member handling charge entry?

Step 4: Fix the source, not just the claims. Update the charge entry template. Add the modifier to the fee schedule default. Contact the provider about the documentation gap.

Step 5: Check the same edit category the following week. If it drops off, the fix worked. If it persists, you missed the root cause.

This process takes 20 minutes per week and prevents the majority of repeat rejections that silently inflate denial rates month after month.

 

COMPLIANCE WATCH

OIG Work Plan — E&M Documentation Under Continued Scrutiny. The OIG’s 2026 Work Plan maintains active review of Evaluation & Management coding accuracy, with particular focus on 99214 and 99215 established patient visits billed at rates significantly above national specialty distribution. Under the 2021 AMA E&M guidelines, code level is now driven by Medical Decision Making (MDM) or Total Time — not documentation elements. Your notes need to reflect actual clinical complexity, not just length. If your practice has providers billing 99215 at unusually high rates, conduct a random 10-claim audit: pull the notes and confirm MDM supports the level billed. A self-audit now costs far less than a targeted probe later.

 

PEOPLE & PRACTICE

The Remote Work Question for Billing Staff

Most billing functions can be performed remotely. The question is whether your practice manages remote billing staff well enough to sustain the performance you’d get in-office.

Practices that manage remote billing effectively share three characteristics: they measure outputs (claims submitted, denials worked, AR metrics) rather than inputs (hours logged); they maintain a daily or weekly standing check-in that is genuinely brief and action-oriented; and they invest in shared tooling so remote staff aren’t isolated from information the in-office team has.

Practices that manage remote billing poorly do the opposite: they try to monitor activity instead of measuring results, skip regular check-ins, and allow information silos to form between front desk and billing.

The billing function is well-suited to remote work. The management question is the actual variable.

 

ASK THE PULSE

From a reader managing a 4-provider internal medicine practice in Connecticut: ’We’re getting CO-50 denials on annual wellness visits from one commercial payer. Our providers are adding chronic problem list diagnoses during the AWV, which the payer is using to deny the whole visit as not covered. How do we fix this?’

Our answer: This is one of the most common AWV billing traps, and the fix is in how the visit is billed, not the documentation.

Annual Wellness Visits (G0438/G0439) are preventive services. When you add chronic condition codes as primary diagnosis drivers, some commercial payers reclassify the visit as a problem-focused E&M rather than a preventive visit.

The solution: bill the AWV code with the Z-code primary diagnosis (Z00.00 or Z00.01). The chronic condition codes belong in the encounter record but should not drive the primary diagnosis on the AWV claim. If a significant separately identifiable problem was also addressed, bill the appropriate E&M separately with modifier 25 on the E&M.

For the denied claims: appeal each one with a cover letter explaining the preventive service structure and attaching the clinical note. Most commercial payers overturn on first-level appeal when the AWV coding is corrected.

Got a question? Hit reply.

Quick picks — tap one to vote for a future topic:

Clearinghouse setup Staff training
Claim scrubbing Patient portal
SEND US YOUR QUESTION →
 

ONE MORE THING

The most common EHR support request across all major billing platforms in 2024 was ’how do I run a denial report.’ The second most common was ’where do I find my open claims.’ Both answers are in the same section of every billing platform’s help center — and both are questions that a 15-minute onboarding session with a new billing hire would answer permanently.

Documentation gaps in billing staff training cost more than the training would. Build the 15-minute EHR orientation into your onboarding process and never skip it.

 

COMING NEXT TUESDAY

Prior authorization is breaking your revenue cycle

93% of physicians report auth delays. Here’s the system that stops auth denials.

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