According to The Workforce Institute, 49% of American workers will begin searching for a new job after just two payroll issues. This highlights the importance of getting it right: 72% of employees acknowledge they would face financial difficulties if their paychecks were delayed by even one week.

While delays and errors are serious, even experienced HR and accounting teams struggle to prevent them. The challenges are undeniable: constantly changing regulations, state- or country-specific tax policies, and managing vast amounts of employee data. On top of that, variations such as overtime, raises, and holiday schedules complicate the process for each individual employee.

These obstacles often lead to errors, and errors come at a high cost. In 2020, the Internal Revenue Service fined U.S. businesses $6 billion due to payroll mistakes. Furthermore, the fact that 34% of small businesses still rely on manual payroll processes using spreadsheets only increases the likelihood of incurring penalties.

Fortunately, there’s a solution: RPA payroll automation. Let's explore the technology, its advantages, the payroll tasks that can be automated, and examples of companies benefiting from RPA in payroll.

What is RPA payroll automation?

Payroll automation refers to the technology designed to simplify payroll processing and management workflows. Payroll automation software helps teams handle tasks such as updating employee information, completing forms, and processing payments more efficiently.

Robotic Process Automation (RPA) is one of the leading automation technologies. It utilizes automated scripts or "bots" that follow preset rules to complete tasks more quickly and accurately than humans. RPA is particularly effective at managing rule-based, repetitive tasks that involve large data sets and are prone to errors.

Many aspects of the payroll cycle fit this description, making them ideal candidates for RPA automation. For instance, in the Deloitte Global Payroll Benchmarking Survey, 30% of respondents highlighted the manual entry of data as the most time-consuming payroll task. But what specific benefits can companies expect from automating their payroll processes with RPA?

How can RPA payroll automation benefit your organization?

RPA automation is revolutionizing various industries, and it's no surprise that it's becoming a key player. According to the Global Deloitte RPA Survey, 53% of respondents have already adopted or are in the process of implementing RPA. This trend spans across industries handling vast amounts of sensitive data, such as healthcare and banking.

The HR sector is no exception. We’ve already explored how RPA enhances recruitment by speeding up decision-making. Now, let's look at payroll processing—another vital HR function often in collaboration with finance and accounting teams. How can these departments benefit from RPA in payroll automation?

Patient Data Collection

Collecting essential patient details, including name, date of birth, visit reason, and insurance information (provider name and policy number), which is verified by medical billers. This data helps create a patient profile for reference during the medical billing process.

Claims Submission

The process of sending claims from healthcare providers to insurance payers for reimbursement.

Accounts Receivable Follow-Up

Facilitating the recovery of outstanding payments by addressing denied claims, investigating partial payments, and reopening claims to ensure full reimbursement from insurance providers.

Reporting

Reporting provides insights into financial data, management metrics, and key performance indicators to assess outcomes and gauge the health of processes. It's essential to streamline the medical billing system as a core component of Revenue Cycle Management. A well-organized internal RCM enables healthcare providers to address issues promptly and maintain a steady revenue flow.

Offer Flexible Payment Plans

Payment options play a vital role in enhancing the customer experience, yet they are often overlooked. Offering flexible payment methods such as card-on-file, online payment systems, and tailored plans allows patients to pay conveniently and securely, streamlining medical billing processes and boosting revenue.

Appeal Denied Claims

Even with accurate coding, there’s a 3-4% chance of claim denial. This risk increases to 15-25% when there are process inefficiencies. To ensure payment for services rendered, the medical billing department must actively follow up on denials and take appropriate action.

Minimize Missed Appointments

Missed appointments and last-minute cancellations can lead to significant financial losses. Implementing a cancellation policy with a fee is one solution, but offering virtual appointments can also be a game-changer. Patients are less likely to skip appointments when they don't have to deal with traffic or take time off work to visit in person.

Conclusion

Managing medical billing is both challenging and rewarding, but it can be made more efficient and easier to handle with the right improvements.

Innovation drives company growth and success. By reducing manual tasks, you allow yourself and your team to focus on more strategic initiatives. This ultimately enhances the overall quality of medical billing management.

Streamline your medical billing processes with Robotic Process Automation (RPA) to accelerate efficiency and unlock maximum value.

Our RPA consultancy services are here to help identify areas for improvement and implement an automated medical billing management system tailored to your needs. Let us help you optimize your processes quickly and effectively.

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Yana Pokora

Content Manager at Destan. A researcher of automation implementations across industries and their impact. Marketing & dog lover.

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