Managing Accounts Receivables is the cornerstone of successful revenue cycle management in medical billing. Accounts Receivables in Medical Billing, is the amount of money that patients or insurance companies owe a practice for services rendered. If you face issues with your Accounts Receivables in Medical Billing it can lead to cash flow disruptions, write offs, and financial instability. Synergy HCLS works on ensuring the right Accounts Receivables in Medical Billing workflow so practice can receive maximum reimbursement and reduced outstanding balances.
Processes in Accounts Receivables in Medical Billing
1. Insurance Follow-Up: Contacting insurance carriers to make sure claims are processed and paid in a timely manner.
2. Patient Balance Follow-Up: Handling balances from patients, including statements and payment plans.
3. Denial Recovery: Reviewing and resolving denied claims to expedite payments.
4. Credit Balance Management: Mmanaging the overpayments that patients or insurers make and reimbursing when required.
5. Collections: Recovering past due billings and minimizing bad debt.
All these processes are vital to securing the financial health and cash flow of healthcare practices.
Top 5 Accounts Receivable Metrics You Should Be Tracking In Medical Billing
1. Days in AR/Days in Accounts Receivable: How many days it typically takes to get paid Higher value represents that collection processes are being efficient.
2. A/R Aging: Segregates receivables into buckets (for instance, 0-30, 31-60, 61-90 days) for overdue payments to track and prioritize collections efforts
3. Net Collection Rate: Shows the percentage of total revenue collected compared to the amount that was billed and is collectible.
4. First Pass Resolution Rate (FPRR): Measures the percentage of claims that are paid on the first submission, allowing avoidable rework.
5. Denial Rate: To help identify weak areas in claim submission accuracy, the Denial Rate tell the actual percentage of claims denied by insurers.
These metrics provide insights into the efficiency of your operations and allow you to brainstorm ways to speed up your revenue collection.
How to Manage Accounts Receivables in Medical Billing
1. Automatic Follow-ups: Use automated systems to schedule and track follow up on unpaid claims and patient balances!
2. Optimize Denial Management: Analyze denials on a recurring basis, rectify top mistakes, and take corrective measures.
3. Improve patient payment methods: Simplify collections through the use of online portals, payment methods, and plans.
4. Review AR Aging Reports: Regularly analyze AR aging reports to track the status of accounts, prioritize your efforts on high-priority accounts, and ensure that older receivables are getting resolved.
5. Maintain Accurate and Timely Documentation: This reduces rejections by filing complete, accurate claims by their due date: Keep Accurate and Up-to-Date documentation
When equipped with these strategies, healthcare practices face shorter AR days, which translates to better cash flow and overall health for the practice.
Summary
The Accounts Receivable in medical billing is the most important part of the medical billing process since it assists healthcare providers in getting paid on time. Managing ARs includes accurate claim submissions, promoting denial handling, communication with patients and implementation of technology for operational efficiency. Implementing best practices for AR and avoiding common pitfalls can make the difference in improving AR processes and ensuring cash flow is always healthy enough to maintain financial stability and allow providers to focus on delivering the highest quality patient care possible.
Effective Credit Asset Management in Medical Billing is Key to Continuing to Maintain a Profitable Practice By monitoring critical metrics and deploying the right actions, you can ease your collections and lower the outstanding amounts. Offering Medical Billing Solutions for Optimized Revenue Cycle, Reduced Denials, and Enhanced Profitability, Synergy HCLS provides custom-advantageous Accounts Receivables in medical billing. Work with us so you can run your practice financially sound and spend time on providing great patient care.
