Why Is A/R Follow-Up Crucial In Medical Billing?Med Miles LLC
With the rise in the number of services provided by physicians and hospitals, it is important to recover overdue payments from the insurance companies easily and on time. This is when accounts receivable (A/R) comes into the picture.
Why A/R Is Important For Healthcare Services?
In the healthcare industry, the accounts receivable follow-up team is responsible to look after the denied claims and renew them to get maximum reimbursement from the insurance companies.
However, it is important to have a follow-up on your claims after submission in order to reduce the number of days starting from submission to payment. It is important to note that the claim should be submitted within 72 hours after you have provided the services.
Also, in medical billing managing accounts receivable is difficult for the providers. Providers should track their unpaid accounts, assessing payment action, and apply necessary procedures to ensure the complete payment.
One of the most important parts of managing accounts receivable is to ensure that claims are paid successfully and patients pay all their pending balances.
According to the research survey, it is reported that about 25 % of the patient services which have been rendered are unpaid.
Moreover, a study has also been conducted by Centers of Medicare and Medicaid Services in which they display that only 70% of the medical claims are reimbursed at the first time of submission.
Others are pending as outstanding accounts receivable which means out of 30 claims 18 are not resubmitted to the payer that will lead to huge financial losses for medical providers.
Reasons Why A/R Follow-Up Is Important In Medical Billing
The financial stability of every provider relies on positive cash flows. For this reason, follow-up accounts receivable is necessary.
Ensures Financial Stability of the Hospitals
It is important for the healthcare providers to make sure the financial stability of the healthcare services that highly depend on a positive cash flow.
Hospitals should take necessary actions to make a steady cash flow of revenue in order to recover their payments. If you want to grow your practice then accounts follow-up is necessary.
Helps In Collecting All Pending Payments
Worried about your overdue payments? Then track your pending claims to recover the overdue payments without any error. The professional and skilled team will help you in the claim follow-up procedure so that it gets easier for you to receive payments on time.
Decreases Time For Outstanding Payments
One of the main objectives of managing accounts receivable is to minimize its time of the accounts that remain outstanding. At this step, the team tracks accounts that have not been paid yet, also evaluates the payment process and implements some necessary procedures to make payment secure.
Claims Never Reach To The Payer
Do you know the biggest reason behind the delay in payments? It happens when insurance companies have not received any claim. But, the question may arise why they have not received any claim.
There are chances when paper claims are lost. So, we recommend you switch towards the electronic paper form in which you send claims electronically to the insurance companies.
If you have done claims follow-up and you get to know that the claim has not been received by insurance companies then you should have a focus on another request for the claim.
To Follow-Up On The Denied Claims
It usually depends on the denial reason, Instead of waiting to get a mail from an insurance company about the reason for denial, you can actually send a new claim request by taking all the necessary actions. It is important for your accounts receivable department to ensure all the claims are followed.
Recover Claims Which Are Pending Information
It is noted that claims processing is delayed due to additional information needed by the member. Proper tracking allowed the A/R team to learn the member’s situation and then choose appropriate actions to expedite the process.
Steps for Medical Billing A/R Follow-Up
Following the HOW to follow up on Accounts Receivables, we need to look at the steps of follow-up medical billing. Let’s have a look!
Preliminary Evaluation Of A/R Follow Up
This step identifies and evaluates all claims recorded in the aging report. The A/R follows up with the team, which now looks for a corrective course of action by the provider, which helps identify claims that can be corrected.
Evaluating Issues With Claims
At this stage, there are various issues analyzed by the team related to claims that are designated as uncollectible or claims for which the insurance company has not yet made payment in accordance with the contracted rates with the providers.
In addition, the appeal/key carrier limits are checked, and the claim address is verified to achieve an optimal treatment unit.
Collection From Medical A/R Follows Up
This is a critical phase where different activities are carried on the basis of analyzing issues with claims.
In this phase;
- All claims are approved if they are within the appeal/fill limit of the insurance company, with proper verification of all necessary billing information.
- Also, few claims are appealed for the essential supporting documents. Mostly, these claims are paid by the insurance companies.
- On the last, claims are now electronically transmitted directly to the insurance companies with the help of clearinghouses. Moreover, these types of claims are followed by the insurance companies for confirmation.
Why Outsource Your Accounts Receivable To Med-Miles LLC?
It is critical to have a dedicated A/R team who can follow-up with the insurance companies to eliminate denied claims.
Because, apart from AR, there are many procedures that require appropriate attention such as payment posting, verification, and charge entry that must be completed first.
By outsourcing your accounts receivables to MED-MILES LLC providers will get relief from all the time-consuming tasks and can focus more on their core competencies.
We will make sure that our team should not have any difficulty in collecting the amount for the services being rendered. Want to connect with our A/R specialist? Call our experts at +1 888-598-9181.