The healthcare industry involves the complex process of medical billing a coding process. In this process, one essential factor to be considered in the accounts receivable aging report. This factor helps the company to retain financial stability which eventually leads to success. In order to define what accounts receivable is, we can say it’s the amount owed to a company for their treatment of a patient. Therefore, it can be said that AR plays a huge part in the revenue earned by the organization. This means that it needs good management techniques.
One way to reduce account receivable is to make sure there is a minimal gap between the time of submission and payment. The company can follow up claims right after submission to achieve such a situation. The best way is by making sure the claims are submitted within 72 hours after the treatment has taken place. In order to properly handle the account receivables of a company, a process must be followed. The person does not only have to track unpaid accounts but also assess payment action as well as apply procedures. This allows secure payment to take place without any issues.
Proper AR management is important in ensuring that claims are paid. This way no patient has any due charges and the medical billing company is able to generate good revenue. This means that if the accounts are not collected timely, the company might face problems. They might be unable to contribute the right amount of resources to their practice, leading to decreased effectiveness.
How to Improve?
A medical billing and coding company tries to make sure no such issues arise. For this purpose, the company makes use of accounts receivable aging. Along with this they also incorporate days or months outstanding. It gives them a better image of the financial report. The timeframe will also prove helpful in other ways by providing you the information in regard to:
- The number of claims that didn’t go through
- The time passed since the last payment
- The number of claims that are close to reaching the timely filing limit
- The insurance claims age
- How many times have statement been sent to patients
To improve the collection of an organization, certain steps can be considered. These steps include:
An analysis would help the company to point out the different companies and their collection times. You will be well aware of which insurance companies are bound to pay. You will also be able to highlight the companies that take their time in regard to the payments. Moreover, an analysis of collection will bring to light the companies that have greater denied claims. Once you are aware of this information, you can function accordingly.
Patients and collections
A medical billing and coding company can also consider educating their patients about the payment process. This would also the company to easily collect from the patients after treatment. No time wasted would lead to efficiency. The company would face no hurdle in regards to any payments including copayments, prepayments, and outstanding payments.
Frequency of Errors
In order to improve AR management, a company can also consider gathering information about errors made. The errors that frequently take place can be dealt with accordingly. These errors can take place in various parts of the operation. Gather patient data, coding, billing, or other processes all come under this. Therefore, their information will help the company to make changes that bring with it an improvement.
One step that will prove beneficial to the company can be an addition to its software. This addition would be aimed at notifying the staff regarding accounts that are past due. This would help the company to stay on track. If they are aware of the accounts past due, they can take the necessary steps required. Such improvements can contribute to smooth operations.
It is important for a team to stay active. Their participation is what helps to make sure that the company is on track. Therefore, a team should be designated to track payers. With regular meetings, they can keep the AR management up to date about its status. Such updates will help the company to deal with the problem before it becomes too problematic. They can also use the information to come up with better and more effective collection techniques.
Why Are Specialists Considered For The Job?
A medical billing and coding company can achieve financial success with proper AR management. Such management must include consistency and effectiveness. The healthcare industry is constantly innovating. This innovation brings with it changes in rules. These changes tend to make the already complex process more difficult. For this very reason, it is important for the company to make sure the whole process is handled by specialists.
Specialists are well aware of the steps that should be taken in order to appropriately manage AR. Their expertise helps to make sure that no bad debt takes place. Considering that no follow up of claims leads to bad debt, trained personnel are vital. A healthcare company can also consider outsourcing it’s billing to third party providers. Either way, the proper measurements must be considered. Medical billing and coding play a vital role in the revenue generation of a company, therefore it cannot be compromised. The company can either consider hiring separate teams for the process or simply trust a service provider with it. This way the AR would be managed in a strategized manner, allowing the company to enjoy various benefits.