Accounts Receivable Management in Healthcare is the management of payments due by the insurance and patients to the physician for the services provided. It is crucial to manage the due payments and balances on time to avoid financial downfalls from revenue loss. Sustaining regular cash flow from Insurance and Patients within the TAT from the date of claims submission is mandatory to avoid AR accumulation affecting the financial goal of the practice.
Quality Healthcare Accounts Receivable Management is the primary requirement to keep the monthly cash flow of the Medical Practice healthy and evergreen. Missing managing the AR Follow up can trigger revenue pitfalls and affect business continuity. Effective management of Accounts Receivable on a daily basis to get cleared to avoid AR aging claims older than 60 days helps keep up with the financial goals steady and profitable.
How AR backlog can affect your Practice Revenue?
Not all practices have work strategies focusing on keeping Accounts Receivable minimal or clearing them on a daily basis. This practice of ignoring AR claims and delaying re-working on them leads to the accumulation of AR aging buckets missed on the claim submission TAT with low chances of reimbursement of collection possibilities. Acknowledging the fact this is the revenue that your business owes to handle other expenditures like staff salary, and business-related expenses, ignoring them month on month can be intolerant and unmanageable at some point.
How to Tackle the AR Backlogs?
- Analyze and identify AR backlog by aging buckets.
- Start working on the older claims to clear them off with maximum reimbursement.
- Simultaneously keep working on clearing the day-to-day denials to avoid further heaps of backlogs.
- Engage a standalone team or staff to work on AR Management and ensure cash flow.
- Outsource to an AR Expert to have stress-free and lucrative support.
Outsourcing Account Receivable Management
Choosing a billing partner to handle Account Receivable Management or to clear up Aging AR claims yield multiple benefits. Partnering with Medical Billing Company not only fixes AR-related challenges but also provides complete Revenue Cycle Management Support. Let us look in detail at the benefits of outsourcing Accounts Receivable Management:
- Streamlines Billing Process to eliminate or reduce Accounts Receivables
- Prioritize aging AR to be processed within the TAT and ensure maximum collection
- Clear day-to-day AR claims to keep the cash flow intact and avoid the accumulation of Old AR.
- Engage staff experience with payor-related nuances and knowledge of managing Accounts receivable as per standards
Advantages of Account Receivable Outsourcing:
Partnering with an experienced Medical Billing Company and leveraging their expertise in AR Management and Follow up can yield a multitude of benefits, Offshoring the entire Medical Billing scope or only Accounts Receivables can be a decision taken considering the various areas of support you might require in RCM space. However, having industry-based expertise for handling your Accounts Receivable Management is fundamental to ensuring the bottom line of the business is not affected and to keeping it evergreen and healthy. To know about the various benefits of Outsourcing AR Management:
- Timely follow-up with Insurance Companies to ensure your Account Receivable are paid on time, keeping in mind the Timely Filing Limit of each payor, and avoid hassles due to delayed claims processing or appeals.
- Complete analyses of Claims billed amount and Claims Reimbursement to ensure all due and final payments are collected on time.
- Aims to speed up the collection process to keep the capitals flowing without delay, Regular follow-up and an on-time analyzes
- Reduced Administrative cost of Denial Management Cost, with Increase Reimbursement and ROI
- Usage of an Integrated collections system for faster, easier, and quality services.
- Streamlined process and approach in handling denied or low-paid claims with a clear understanding of the payor or client-specific protocols applicable to the specific claims
- Clear out old or aging AR claims to curb accumulation leading to Aging AR and payment denials
Outsourcing does not only help manage Account Receivable but provides complete RCM support, for your billing companies. Revenue Cycle Management Outsourcing or Outsourcing end-to-end billing to an experienced Medical Billing company with a team of Medical Billing and Coding experts working for more than 100 clients across the US entitles an array of benefits and advantages to you as compared or Onshore Medical Billing. To outsource Medical Billing and Coding or Complete Revenue Cycle Management Service reach out to Ecare.
Mentioned below are the benefits of Accounts Receivable Management:
Prioritize Denied and Rejected Claims Processing
As a general practice denied and rejected claims are given less importance and mostly ignored without processing them on time causing the claims AR Aging dates to go beyond the timely filing limit and thereby making it difficult to get the reimbursement. Engaging an Accounts Receivable Follow up team to process them effectively will ensure timely collection.
Clear AR Aging buckets
Most times, the major issue with Claim denials and rejections is that they get accumulated which are later categorized into the aging buckets based on the number of days they have been pending for. To get these pending claims cleared and processed for collection, an efficient AR Follow up a team in place is quintessential to clear the backlogs and improve the collection process.
Timely Follow-up
It is essential to do regular follow up with Insurance companies to get the denied claims process sooner. Timely follow-up will help get the claims filed and payment settled. Trained and skilled Accounts Receivable Analyst and AR caller with experience have the knowledge to handle follow-up calls and to approach the insurance with the right tool to speed up the payment processing.
Enhance Quality Billing and Coding
Account Receivable Analyst identifies the major reasons for claim denials and helps educate the relevant teams on the same to ensure they avoid repetition and thereby curb the denials and enhance quality claims and first past ratio.
The benefits of Accounts Receivable services by an experienced AR team can render quick and faster fixes to denied claims, therefore it is advisable to outsource the Accounts Receivable Management Services to an experienced Outsourcing Partner to experience the below:
- Faster processing of denied claims
- Clear Backlogs and keep denials at bay
- Regulate collection process
- Experienced and skilled AR Callers.
- On-time claims and payment processing
- Increase Quality Claims
About e-care India:
e-care – An India-based Medical Billing Company with over two decades of experience and expertise providing complete Medical Billing and Revenue Cycle Management Solutions to 100+ clients across the U.S. Our Accounts Receivable team is structured to provide complete solutions to address all difficulties in Accounts Receivables. To know more about e-care and our Accounts Receivable Management Solutions call +1-813-666-0028 or log on to www.ecareindia.com