The American hospital association in 2020 has estimated that the healthcare system and hospital experience an average loss of $50.7 billion monthly and around $202.6 billion annually in revenue; and the main reason for their losses are mostly due to improper hospital accounts receivable management.
What are accounts receivable in a medical billing business?
The money owned for the services or treatment that the healthcare practice has provided is accounts receivable ( A/R), which is typically measures as days in A/R. In fact, a practice with good cash flow is where the practice encounters a lesser denial and rejection rate and the highest percentage of accounts receivable only in the first bucket itself.
Common hospital accounts receivable challenges :
Denial of claims –denial and rejection of claims are being one of the most common reasons for problems in accounts receivable management. In fact, denial and rejection happen due to five basic reasons starting from :
- missing/inaccurate information, patient medical history, etc
- duplicate submissions of claims
- mentioned of uncovered procedure,
- coding and modifier errors
- late filing of claims and submission
Unwanted write-offs – not keeping the track of write-offs often lead to higher accounts receivable problems. As even though the write-offs are small, at times the write-offs accumulate to a larger net loss for a practice.
Inexperienced billers and coders – lack of experienced billers tend to miss out on the balance. However, experienced billers and coders not only ensure a faster collection process but the billing process is done accurately resulting in a better cash flow and increased patient satisfaction.
In fact, Sunknowledge Services Inc is one such RCM that can help you resolve your long days of hospital accounts receivable which are as old as three years.
Sunknowledge solution :
With a continuous follow-up and maintaining of seamless billing operation with checks and rechecks, Sunknowledge experts have a track record of 99.9% accuracy rate for the last 15 + years. Ensuring no write-offs without your consent, Sunknowledge experts are further known for a billing approach that further help practice with:
- 80% operational cost reduction
- Highest first pass collection
- No-cost dedicated account manager
- 30% reduction in your A/R bucket.
- Customized reporting maintaining complete operational transparency
Following complete HIPAA compliance, Sunknowledge is one of the leading destinations with 100s of excellent client references as well. In fact, Sunknowledge Services Inc is a one-stop destination for a seamless billing process that can help you reduce your hospital accounts receivable bucket in no time.
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