January 31, 2014
Accounts receivable is money owed to you by your patients which makes AR management extremely important for running a successful medical practice. If you are not managing accounts receivable in the right manner, the financial health of your practice will get affected. This is because revenue collected from your customers is not just required for paying the expenses but also for turning a profit.
Lack of AR management will result in patients not paying timely or not paying at all. This will disrupt the cash flow for your practice; therefore, it is extremely important to have policies and practices in place to know how account receivables will be managed.
Considering the pressure rising due to healthcare reforms and complications in payer processes, it has become essential for physicians to collect the entire amount they are owed. It is essential to audit and clean up operations on regular intervals even if you think that your AR is running smooth. This is required to ensure that processes and cash flow at your practice are being managed well.
How to strengthen AR management?
It is best to get rid of outdated patient data. Staffs need to be trained for verification of insurance card data and other information every time a patient visits
Wipe off small balances such as a vaccine reimbursement from a now-defunct payer or missed co-pay from a deceased patient rather than wasting time and money in billing continuously for them
Make sure your existing balances are being collected on the date of service rather than sending the bill in the mail to the patients. Appropriate collection measures and legal actions must be taken to collect from recurring patients
If your practice is not following any of the above-mentioned tasks, lack of AR management will eat up your practice revenue. You require continuous monitoring to make sure everything is orderly in accounts receivables.
Practices usually lack the time and resources to manage AR due to which they prefer to outsource these services to a billing company.
Medicalbillersandcoders.com has been offering successful AR management services to physicians across the US. Our aim is to help you retrieve your revenue, make profit and offer quality patient care. You can either opt for our in-depth analysis-backed AR management solutions or we can customize parts of it as per your practice needs. The well-trained team at MBC can also help you face challenges related to AR such as coding errors, claim denials, delayed payments, documentation issues and so on.
Accounts Receivables / Claims Denials