How should underpayments be handled?

• A. Using a reporting tool, and routing underpayments to follow-up workqueues
• B. Immediately writing off the underpayment
• C. Refunding the patient directly
• D. Ignoring underpayments until the end of the year

Answer: (A)

Tracking underpayments and actively pursuing them is essential to maximize revenue and keep patient accounts accurate. Underpayments happen when the payer pays less than the billed amount due to coding errors, payer policies, or misapplied contracts. The best approach is to use a reporting tool to surface these underpayments and route them to the appropriate follow-up workqueues. This ensures every underpayment is reviewed, assigned to the right specialist, and worked through with proper documentation, appeals, or resubmissions as needed. It also creates an audit trail and helps identify patterns to prevent future losses.

Immediate write-offs discard potential funds and mask ongoing issues. Refunds to the patient are not the standard first step and can blur responsibility. Ignoring underpayments until year-end creates revenue leakage and compliance risk. The proactive workflow of routing to follow-up ensures timely correction and accountability.