Mastering Hospital Accounts Receivable
Managing hospital accounts receivable is a never-ending problem. Effective AR management in healthcare is crucial for steady cash flow and financial stability of the practice. However, navigating the complexities of AR can be challenging with claim denials and delayed reimbursements.
A bulk of due accounts receivable can affect your practice’s financial health. To reduce the AR days and manage the revenue of your practice, you need to identify the contributing factors in aging AR.
In this blog, we discuss the pain points of AR along with their plausible solutions.
Issues in Hospital Accounts Receivable
1. Inadequate documentation: Inaccurate or incomplete patient information, insufficient insurance details, missing or incorrect medical history of the patient can hinder the overall process.
Solution: You should develop a systematic approach in collecting and organizing essential documentation. Implementing electronic health records can be a feasible solution for this.
2. Delayed reimbursements: An absence of structured denial management system results in reimbursement delays and claim denials. As a result, your AR will pile-up and financial growth of the facility will be disrupted.
Solution: Establish a robust and systematic approach to denial management. For instance, you can introduce data analytics that provide insights into the denial patterns and rates.
3. Unnecessary write-offs: Mostly the in-house team does not keep track of the payments due to the clinical burden. This eventually affects the balance sheet of the hospitals and revenue generation is disrupted.
Solution: There should be a dedicated and expert team who keep track of everything before any write-off. Everything must be kept in the accounts book, so you can keep track of the payments.
4. Scattered collection process: Just like other businesses, it is essential for healthcare facilities to generate revenue for proper functioning. However, lack of effective collection procedure and staff shortage keep the patients abreast of billing. As a result, the hospital accounts receivable piles up delaying payments.
Solution: You need to foster a culture of effective collection processes to induce revenue generation. Furthermore, you should provide your team with the correct tool for payments so that your patients are not disappointed by your services.
Conclusion
Addressing the pain points of hospital accounts receivable is crucial for achieving financial stability within the practice. With the implementation of robust documentation process, claim denial management and effective communication you can master the AR procedure. On the other hand, you can consider outsourcing of AR services. A team of expert professionals can help you with in-depth knowledge and understanding of AR management. For instance, an RCM company like Sunknowledge Services Inc, has been working in the healthcare realm for 15+ years now.
With 100% HIPAA compliance and 80% reduction on overhead costs the team has experience of working on AR buckets older than 90 days. A team of dedicated employees is working relentlessly to provide your healthcare facility with an end-to-end solution.
A genuine outsourcing partner can understand the pain points and provide you with a tailored solution to manage your accounts receivable in healthcare. You can connect with Sunknowledge team over a non-commitment call to learn about their processes and why they are hailed as the best in the industry.
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