Implementing an effective and efficient accounts receivable (AR) management process may help improve and maintain a medical practice's cash flow. Medical accounts receivable is one of the most crucial aspects of the revenue cycle management (RCM) process, which typically requires diligent management and a knowledgeable billing and coding team.
First, you must understand why optimized AR matters and how you can optimize the reimbursement process. This guide explores the importance of medical billing AR, the potential challenges a medical practice might experience with AR and how it can mitigate these challenges.
Accounts receivable in medical billing are the outstanding reimbursements or invoices owed to a hospital, medical practice or health care organization in exchange for issued treatments and services. The accounts receivable process starts after your practice bills a patient or sends a claim to the relevant health insurance company. Once the medical practice is paid or reimbursed, the account goes out of accounts receivable.
Providers generally classify accounts receivable according to their age:
Accounts receivable must be handled as soon as possible as part of the medical billing and RCM process. Having many accounts receivable lengthens the AR cycle and puts your practice at risk of revenue leakage, which may lead to less cash flow for paying staff and maintaining operations. That's why it is essential to reduce and maintain a practice's accounts receivable to help improve its financial health and help it thrive.
Medical billing and accounts receivable are critical aspects that every health care organization should handle correctly and efficiently. Here are a few reasons why your practice should prioritize and optimize the medical accounts receivable structure and process.
Handling medical billing and accounts receivable internally may cause a few issues if a practice lacks dedicated staff and the correct practices. Here are some challenges they may encounter.
Inaccurate coding and documentation can sometimes happen when filing claims. These mistakes often result in denied insurance claims and may cause delays and increase a claim's number of days in accounts receivable. Inaccuracy often occurs when staff fill in forms manually, which may raise the chances of errors. Using the right accounts receivable management services and incorporating regular audits may be valuable for improving accuracy and streamlining processes.
Issues often arise when administrative staff and other health care professionals are less passionate about their jobs. They may submit claims late or become slower when handling denials. Less interest in handling accounts receivable management may also cause staff to rush through tasks and avoid double-checking for errors. This makes it essential to employ passionate professionals who understand their job tasks and importance.
The Health Insurance Portability and Accountability Act (HIPAA) aims to maintain and improve the protection of patient health information. Practices must follow the act's health care regulations, which include keeping patient financial data safe and secure throughout the AR process. Additionally, while timely payments are crucial, health care professionals must maintain empathetic communication with patients and insurance providers. So even when staff are pursuing debt, they must talk to people with respect and dignity to clearly communicate charges and payment options.
Incorrect accounts receivable management can lead to increased bad debt and a poor patient experience. Bad debt can occur when patients do not pay and practices submit invoices late and avoid regular follow-ups. When these things happen, practices are less likely to collect payments. Implementing regular and effective accounts receivable management practices is essential.
One of the best solutions for improving medical accounts receivable management processes is incorporating a dedicated accounts receivable team or medical billing service. ProMD Medical Billing offers comprehensive revenue cycle management solutions for improving the accuracy and efficiency of your billing process. Here are some ways our specialized experts tackle the challenges of account receivable management.
ProMD Medical Billing has certified medical coders who complete accurate coding and billing information to minimize the chances of delays and denied claims. They follow up on insurance claims and verify patient statement details for accuracy. Our professionals also prioritize timely submissions to help ensure the practice receives its payment.
Incorporating a specialized team of professionals to manage accounts receivable can help ensure the team is motivated and equipped with the right skills to perform efficiently. Our billers and coders are AAPC-certified and have decades of experience implementing an effective accounts receivable management process. We aim to increase your revenue by 20% in 90 days and achieve a 99% first-pass rate on insurance claims.
We incorporate a follow-up service to help ensure claims are completed on time and run smoothly. Our medical billers speak with insurers directly to learn the reason for any denials. If any information is missing from the submitted claim, they may then promptly correct it and send it again to help you receive optimal reimbursement.
Medical billing and coding regulations and guidelines may often change to better protect organizations and patients. Our professionals constantly monitor standard changes and sharpen their understanding of regulations to ensure compliance throughout the process and mitigate risks.
An optimized accounts receivable management process is critical to a medical practice's financial health. At ProMD Medical Billing, we prioritize helping you streamline the billing process and boost revenue when dealing with insurance providers. Our certified professionals help you do so through tailored solutions that we incorporate into your existing systems.
Whether you require assistance with denial management, claims submission or claims follow-ups, contact our experts today for specialized medical accounts receivable management solutions.
