Effective account receivable management strategies are a crucial part of running an effective healthcare practice. An improving and streamlined account receivable process carries many advantages to the table. It also impacts the overall medical billing operations. By adopting an efficient strategy, dramatic improvements result in the account receivable process and provide exciting benefits for the business. Let us discuss some of the strategies to improve account receivable management.
Analyze Your Accounts Receivable (AR) In Detail
Looking at a rapidly developing heap of account receivable will just put you on the road to success. For that, we recommend analyzing your account receivables. During the analysis, first, you have to measure the “days in AR” which means the average number of days required to collect the payments due to the practice. Also, you need to measure the aging bucket for instance 0-30days, 31-60days, 61-90days, etc. These factors help you to track progress with older bills.
Prioritize Insurance Eligibility Verification
Prior insurance verification is one of the strongest indicators of AR. Checking the patient’s insurance eligibility and coverage is the essential step in keeping up the financial growth of the medical practice. There are various ways to verify eligibility, namely: on the payer site by utilizing software and third-party products to gather detailed information. During the insurance eligibility verification following details are also checked.
- Insurance coverage details like coverage date, in-network or out of network coverage
- Whether is it Co-pay amount
- If it is Deductible amount and how much has been met up until now
Identify the Denial Reasons
To improve the billing collections, identify the most common reasons for claims denials. Below listed are few possible reasons for claims getting denied:
- Incorrect information from the patients
- Charge Entry mistakes
- Registration data error
- Claims Duplications
- Pre-authorization errors
- Lack of medical necessity documentation
- Bundled or Non-covered
- Credentialing and documentation errors
Outsource Account Receivable Management
Medical billing outsourcing company provides end-to-end medical billing services for physicians. They use the latest, technologies to optimize business performance.
Benefits of outsourcing the Account Receivable Management
- Identifies denied claims, unpaid claims, and low payments
- Improves cash flow
- Minimize accounts receivable days
- Ensure error-free claims submission
- An efficient follow-up to settle outstanding claims and dues
- Reduce medical billing and coding errors
- Processes medical claims faster
- Improves billing collection rates
- Saves operational cost
Looking for medical billing companies in India? .e-care is the best medical billing outsourcing company. We achieve effective revenue cycle management for your business. To know more about our services visit us www.ecareindia.com