Maintaining a healthy cash flow is one of the biggest challenges that any healthcare organization faces. In general, Hospital Account Receivable (AR) refers to the amount of money owed to the company by a customer. In the healthcare industry, hospital AR also refers to a patient’s account balance becoming due for payment within a year.
- Management of reports
- Bad debt reviews
- Collection analysis
- Ratio analysis
Are all part of account receivable services. It also includes a review of insurance contracts to ensure that healthcare providers are properly compensated. This article will walk you through the process of analyzing and evaluating data.
How should hospital AR be followed up on?
Charges should be collected at the time of service to reduce hospital Accounts Receivable. Patients who have variable co-payments may be charged at the time of service as well. The staff should have a Medicare allowable payment schedule for the patients’ services provided in the office, as well as the pre-calculated 30% co-payment at the patient’s checkout. Staff should also be aware of Medicare patients who do not have co-insurance and collect the co-payment before the patient leaves the office.
A variety of factors, including outstanding claims and delayed collections, as well as stringent federal regulations, are now causing healthcare organizations to incur additional costs. This puts additional pressure on healthcare organizations to follow up on denied or appealed claims. When an account goes unpaid for an extended period of time, the provider not only loses money but also has to assign additional resources to collect it.
Expert advice on how to cut down on the number of days in hospital AR
- Experienced and well-trained employees
Training employees on the most up-to-date billing and coding techniques can be costly and time-consuming. In the long run, however, if it is completed, healthcare organizations will save a significant amount of money. Billing and coding errors will occur if the healthcare billing staff is not properly trained, resulting in lost revenue.
- Automating your hospital AR department
Businesses now have the tools they need to:
- Streamline processes
- Cut costs
- Boost productivity
Across the board, primarily due to rapid technological advancement that has taken place. By tracking multiple things at once, the best medical billing software can help you streamline your entire collections process, such as:
- Bills that are past due
- Distinguish patients who have fallen behind in their treatment
- Automating the collection of late fees
Manual hospital AR processing is inefficient and costly, but automated AR can help to streamline business processes, allowing the Hospital AR team to improve cash flow, lower operating costs, and provide better customer service.
Particular Reasons to Outsource Hospitals AR Services
The administrative burden on healthcare organizations is frequently increased by outstanding claims and late collections. Furthermore, federal regulations have become more stringent. This increases the pressure on healthcare providers to pursue claims that have been denied or appealed. Medical claim denials are most commonly caused by incorrect or irrelevant medical coding.
Hence to conclude, outsourcing Hospital AR services can assist your healthcare organization in better managing its receivables. It not only assists you in saving money on operations but also in improving your cash flow.