Cash flow is like a bloodline for any small enterprise. Organizations can undergo a lack of benefits yet cannot endure a lack of cash flow.
The case is also the same in the healthcare industry. Every healthcare provider needs a system that is accurate and gets as much of the money to the practitioner as quickly as possible.
Thus, sound accounts receivables are fundamental to the financial health of their medical practice.
Accounts Receivable is the income for which you have billed but have not yet received it. This is the money your patient owed to you. A/R consists of any amounts which are due by patients, insurance companies, or other guarantors.
The MGMA (Medical Group Management Association) estimates that U.S. medical practices fail to collect 25% of the money they’re owed for treating patients. Which means $125 billion is still left on the table annually.
As the financial burden of healthcare shifts towards the patient in the form of higher deductibles and copays, doctors who don’t have a consistent collection process are in trouble. Ignoring your accounts receivable management is a recipe for low cash flow and lost revenue.
Goal Of Accounts Receivable Management In Healthcare
The foremost aim of accounts receivables management would be to keep up maximum cash flow into medical practice by minimizing the collection period and the costs associated.
Offices that are well handled make an effort to ascertain standard procedures for managing their A/R from start to finish – from as soon as the individual produces a new appointment into this minute they receive their last payment.
They instruct their workers this technique, communicate using their patients, and calculate their progress with time.
Why Should You Improve Your Accounts Receivable Management?
For a small business consultant in healthcare, we hate to see doctors ignore the growing balance of A/R and have problems with the results, which ultimately affect their practice.
Unmanaged A/R can put a heavy burden on cash flow and can lead to a lack of income.
The growing attractiveness of insurance coverage with elevated business deductions has forced several medical practitioners to pay more attention to managing their accounts receivable management.
Health providers are more dependent on patients to pay most of the bills. These changes require greater attention and innovation in the billing and collection of the practice.
Hence it’s vital to think about account receivable management solutions.
Invalid insurance is the most common reason for medical billing denial. The reason for refusal is the inability to properly verify the payment of insurance compensation before the service life expiration.
Obtaining and confirming current insurance information, including any changes in insurance coverage, instead of an individual arrives, is crucial for such accuracy and for an efficient revenue stream.
However, “The most important function of the A/R process is to get that claim out right the first time.”
Follow-up With Outstanding Accounts Receivable
To recover the overdue payment from insurance companies on time, effective A/R follow up is necessary.
Accounts Receivable follow-up services allow medical organizations to work smoothly and efficiently, ensuring that the overdue amount is recovered as soon as possible, as might be expected.
Moreover, the accounts receivable follow-up team is responsible for rejecting claims, reopening them to obtain maximum reimbursement from insurance companies.
However, managing accounts receivable management in healthcare is a continuous battle for many healthcare providers and physicians.
Does your practice’s cash flow suffer from high accounts receivable? Does your healthcare firm have improper cash flow due to consistent errors within your account receivable management process?
If yes, then it’s high time that practices should consider focusing more on outsourcing their Accounts Receivable Management which will ensure the smooth functioning of their Accounts Receivable because the ability to maximizing your revenue and profitability relies on it.
Benefits Of Outsourcing Accounts Receivable Management
Effective accounts receivable management ensures that at least the working capital requirements are met. It can incredibly improve the performance of your core business.
When you understand the cost of moving unpaid balance and measuring your exhibition with the right measurements, you’ll start to see improvement opportunities.
Here are some benefits that your medical practice can get through an efficient Accounts Receivables management process:
- Reduce bounce rates and improve your claims management
- Help healthcare providers to reduce compliance risk
- Improved coding accuracy by continually updating the changes that occurs in ICD-10 codes
- Maximize your medical practice revenue
- It also improves billing and collection efficiency by reducing operating costs
- Stop revenue leakages
How MED-MILES LLC Can Help You In Accounts Receivable Management?
MED-Miles has a team of professionals in the healthcare industry having experience of more than eight years to provide healthcare providers with revenue cycle solutions and services at a reasonable cost.
Our goal is to deliver the Quality Services by helping streamline the front/back end operations of your medical practice.
We use the latest technologies to minimize medical billing errors and maximize billing collections.
Effective Accounts Receivables Management process in healthcare is among the areas of practice management that can considerably increase your profits. Whenever you fully grasp the expense of carrying an outstanding balance and measure your performance with the appropriate metrics, then you will start to find opportunities for advancement.
Also, remember that you can’t do it alone as it is a more time-consuming and burdensome task. You need to surround yourself with dedicated and professional staff like Med-Miles LLC. We can help you to achieve your goals more profitably.