Practice Management Alert

Getting an expert to review your billing record retention policy will ensure you keep files long enough

If you're in the process of writing or revising your policy on billing record retention, you need to think about storage logistics and timelines - and adequate backup mechanisms in case of disaster.

Here are three main questions you must answer when writing your policy: 1. How long should we store both paper and electronic copies of billing records?

 
2. Where should we store our records - and do we need multiple storage locations?
3. Do we have adequate backup of our computer files and other electronically stored documents? You should build your billing record retention policy around the answers to these three questions: 1. How long should we store both paper and electronic copies of billing records?
 
Answer: The general rule is that you should retain all medical and billing records for about seven years because that's how long and far-reaching the audit process can be in some instances, says Andrew Cutler with FR&R Healthcare Consulting in Deerfield, Ill. But keep in mind that states' rules vary as to how long you should keep a minor's records after he becomes of legal age.

Try this guideline: "In my opinion, whatever the statute of limitations is for suing on a contract, you should retain [your records] for twice that period of time," says Elliot Oppenheim, MD, JD, LLM Health Law, CEO and president of coMEDco in Santa Fe, N.M. "For instance, in New Mexico you can sue on a contract for up to six years, so I think you should retain [records] for 12 years if you want to be really careful."

Payoff: The amount you pay for record retention will pale in comparison to the cost of a lawsuit if you don't have the records to support your defense, Oppenheim says. 2. Where should we store our records - and do we need multiple storage locations?
 
Answer: With the ease and accessibility of electronic record keeping, practices should move paper storage to electronic copies of all records relating to patients' care and treatment, Oppenheim says. And because CD ROMs require such little storage space, you may want to keep your electronic records indefinitely, he adds.
Don't toss hard copies: Even though you'll have easily accessible electronic records, you should still hold onto a copy of all paper billing records for the appropriate amount of time as indicated by your state's statutes. The point is to always have two separate copies of all records in two separate locations in case a disaster, such as fire or flood, wipes out all your records in a given storage area, Cutler says. So for example, you could keep all your hard copies in [...]