Efficient revenue management is crucial for the financial stability of any healthcare practice. One key metric in this process is the Days in Accounts Receivable (AR), which reflects the average time it takes to collect payment after a service has been rendered. High AR days indicate inefficiencies in billing, collections, or both, which can disrupt cash flow and strain resources.
If your AR days are longer than you want, it's time to do something. Here are five actionable tips to help you reduce AR days while keeping your revenue cycle healthy. Catch the five actionable tips by reading on.
Tip #01
Most delays in payments result from errors in eligibility and benefits verification. Most patients receive services without their insurance benefits confirmation, thereby resulting in claims delay or denial.
Verify eligibility and benefits before the scheduled appointment. Utilize real-time verification tools to verify coverage, deductibles, and co-pays for the patient. This avoids unexpected billing shocks and claims are more likely to be accepted on the first submission.
Tip #02
Inefficient billing processes may involve errors, rejection, and inefficiencies in furthering AR days. All too common are billing errors in terms of coding, missing information regarding a patient, or failure to follow through on outstanding claims. Some Quick Tips help ensure the smooth operation of the billing process timely auditing process to check for bottlenecks and errors; ensure better coding accuracy, and understand what is the payer-specific need.
With our experienced billing experts and advanced automation tools, the claims from your organization are virtually error-free and submitted promptly, thus reducing AR days significantly.
Tip #03
Manual follow-ups for outstanding claims are always time-consuming and likely to miss some cases. Outstanding, unremittingly pursued claims fall through the cracks, and AR days keep going on.
Apply automated AR follow-up tools to eliminate much of the hassle. These systems have reminders on overdue accounts, prioritize high-value claims, and can efficiently track communication with payers.
Tip #04
Unclear or lenient payment policies can lead to delayed patient payments. Patients must be aware of their financial responsibilities upfront, eliminating confusion and missed payments.
Be clear about your payment policies, including co-pays, deductibles, and payment deadlines. Provide flexibility through options such as online portals or installment plans to facilitate timely payments.
Tip #05
It is not easy to pinpoint the reasons for the delay without having a clear view of your AR trend. Such advanced reporting tools tend to pinpoint trouble areas, such as specific payers with frequent denials or excessively large patient balances.
Use data analytics to regularly track your AR performance. Key metrics to focus on include aging reports, payer performance, and patient payment trends.
So, reducing AR days is not just about the speed of collections; it's also about making a more efficient and sustainable revenue cycle. What would strengthen verification processes, optimize billing, automate follow-ups, clearly define payment policies, and leverage advanced reporting is healthier cash flow and greater financial stability.
At Medical Care Billing, we strive to help healthcare providers at every step of the revenue cycle while minimizing AR days. With our specialized services and proven strategies, you can focus on delivering great patient care while we take care of your financial health.
Ready to see a difference? Contact us today to learn how we can transform your accounts receivable process!