Outstanding account receivables are one of the most common problems faced by medical service providers. Having outstanding account receivables means less cash flow. There are multiple reasons behind outstanding account receivables. But the fact is that these account receivables are affecting the billing process of many service providers in the U.S very badly. In this article, we will discuss some of the ways which will help you to increase the revenue and Reduce Accounts Receivable.
Tips to reduce Outstanding accounts receivable:
There are multiple ways, which are helpful in managing to reduce accounts receivable. Some of them are described below:
Submit a claim regularly:
The first step to managing your revenue is to submit a claim more frequently. Usually, the insurance companies process the claim in 5-7 working days, by submitting a claim within one business day you can ensure a constant flow of revenue. Similarly, if you submit a claim only once a week then the chances are likely high that your account receivable will expand. So it’s good to submit a claim on a daily basis to minimize the error and make your cash flow more effectively.
Manage claim denials:
Identifying the exact cause of claim denials, as frequent claim denials are the root cause of outstanding account receivable. For this process, it is the responsibility of the staff members to track the claim denials, identify the problems, correct the claim, and resubmit it. This will help to receive the dues as soon as possible. Further, it is also the responsibility of the staff members to find the reason behind the claim denials and resolve it as soon as possible to avoid claim denial in the future.
So, by doing this you can reduce accounts receivables.
Make Invoicing:
It’s difficult to collect remaining payments from the patient, the longer it’s been the patient visit for the services. To avoid this the best possible way is to send invoices on a regular basis to reduce accounts receivable. It will brighten the chances of receiving the amount on time.
Timely follow-up:
A timely follow-up of all the claims which are submitted for approval is very important for the smooth management of the account receivables. For this purpose, there is a strong role of the AR follow-up team, which will closely monitor all the filed claims. Further, they have to track the claims which are not paid within the 30 days limit and take some action to resolve them. They also must ensure that no claim is delayed and underpaid.
This also helps to reduce accounts receivables.
Help patients to understand the billing process:
One of the main reasons behind the outstanding account receivable is that the patient may not pay the bill, it might be due to the reason that the patient may be unaware of it. Which leads to the underpayment. This confusion occurs when the patient thinks that all the services and treatment are covered in his insurance policy. While sometimes there are some treatments that are excluded from the insurance agreement and the patient is liable to pay for those services.
To avoid this you have to stay connected with your patient, tell them about the services which are part of their insurance agreement and which are excluded from the agreement and they have to pay for it.
Patient follow-up:
After making awareness among the patient about the billing process. The next step is to follow up with the patient. The management team should take steps to engage with the patient like they can do phone calls, Emails to remind the patient about their dues. You can also guide them about their financial responsibility during their visit. Because a healthy relationship with the patient is the key to reduce the outstanding accounts receivable.
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Provide multiple options to the patient for billing:
Patients always want to pay the bills according to their desired mode of money transfer, like some patients prefer to pay their bills with a credit card or through cheque, or some prefer to pay through online payment solutions or through mobile apps. So it’s best for the service providers to provide the patient with multiple payment options so they can easily pay their bills. Moreover, multiple paying options also help the revenue management team to follow up with the patients by sending them reminders about their pending dues.
This tip is also beneficial to reduce account receivables.
Invest in Technology:
There are many advanced tools and software available. Which are very helpful in estimating patient insurance coverage. The early estimate can help the patient to understand their treatment status and billing, so they can pay early. Besides this, there are various other tools that are helpful in reminding the patient about the services. They received during their stay in the hospital. The automatically generated reminders follow up for the due payment. It not only helps you to collect payments on time. But also reduces the effort of your team to generate Emails or phone calls manually.
Take an assessment of Aging accounts:
Go through your aging account daily, these accounts are one of the leading causes behind outstanding account receivable. Research claims that in accounts older than 30 days there are chances that the payer is still processing the payment. This assessment will give you an idea about which payer is processing the claim in what amount of time. So you can easily be focused on it next time when you submit your claim. Moreover, if your patient also holds secondary insurance then you have to take a close look at filling denials. Because in most cases the insurance company gives an estimate of 180 days to fill the second claim after you receive the initial payment from the first claim.
Outsource the billing service to reduce the outstanding A/R:
While there are various ways to reduce the outstanding accounts receivable. It has been seen that most of the service providers struggle to manage their account receivables. In that case, is it best for the service providers to outsource the professional billing team to manage their account receivables. The Medicator’s provide you with complete and reliable solutions to reduce outstanding accounts receivable. Our services include charge entry, claim submission, insurance follow-up, daily A/R working and denial management, and claims follow-up. Call us at (888) 277-1460 for more information.
