Reducing legacy accounts receivable is a crucial task for healthcare providers, particularly those who have been in operation for a long time. Legacy accounts refer to outstanding balances on patient accounts that are older than 90 days. These balances can significantly impact a provider's financial health and require a proactive approach to ensure they are managed effectively. In this article, we will discuss seven (7) strategies that can help healthcare providers in reducing legacy accounts receivable effectively.
To reduce legacy accounts receivable, healthcare providers should prioritize accounts based on their age, size, and collectability. This helps providers to focus on accounts that are most likely to yield the highest return first. Age is a critical factor when prioritizing accounts. Older accounts have a higher risk of becoming uncollectible, so providers should prioritize these accounts over newer ones. Providers should also prioritize larger accounts as they have a significant impact on the financial health of the practice. Collectability is another critical factor to consider when prioritizing accounts. Providers should focus on accounts that are most likely to be paid quickly. This includes accounts with insurance coverage and those that are not subject to any dispute. By prioritizing accounts in this manner, healthcare providers can improve their collection efficiency and minimize the risk of unpaid bills.
To ensure timely payment, healthcare providers should verify the billing information of each account. Providers should check the accuracy of patient information, insurance information, and billing codes to avoid any discrepancies. To increase billing information accuracy, healthcare providers should double-check patient information, review claims, confirm insurance eligibility, check payment history, and communicate with patients. Providers should make use of billing software and provider portals that can help them identify errors and ensure accurate billing. By taking the time to verify billing information, healthcare providers can avoid payment delays and reduce the risk of denied claims. This helps to maintain a positive relationship with patients and insurance providers, which is essential for the long-term success of the practice.
Following up regularly with patients and insurance providers is essential for effective accounts receivable management. Providers should set up a regular follow-up schedule for accounts with outstanding balances. This can include sending out reminders or making phone calls to the responsible parties. Regular follow-up helps to keep accounts current and reduces the risk of uncollectible accounts. By setting up a follow-up schedule, providers can ensure that patients and insurance providers are aware of their outstanding balances. This can help reduce the risk of disputes and improve the likelihood of timely payment. Regular follow-up also helps to maintain a positive relationship with patients and insurance providers and can lead to increased patient satisfaction.
Negotiating payment plans with patients and insurance providers can be an effective way to manage outstanding balances. Providers should work with patients and insurance providers to negotiate payment plans that are realistic and manageable for them. This can help reduce the risk of unpaid balances and improve the financial health of the practice. Providers should consider offering discounts for prompt payment or setting up automatic payments to encourage timely payment. Negotiating payment plans also help to maintain a positive relationship with patients and insurance providers, which is essential for the long-term success of the practice.
Writing off accounts that are deemed uncollectible is an essential component of accounts receivable management. However, it is important to ensure that the decision to write off an account is based on sound reasoning and follows all applicable guidelines. Providers should document all attempts to collect the outstanding balance and ensure that all legal requirements are met before writing off an account. Writing off uncollectible accounts helps providers to manage their outstanding balances and reduce the risk of revenue loss. It also helps providers to maintain accurate financial records and minimize the risk of audit findings. However, providers should ensure that the decision to write off an account is made carefully and with proper consideration of all available options.
Healthcare providers should stay current on all applicable regulations, including those related to billing and collections. Compliance is critical to avoid costly fines and penalties. Providers should have a compliance plan in place that includes regular training, audits, and reviews of policies and procedures. Staying current on regulations can help healthcare providers to avoid costly mistakes and minimize the risk of legal action. Providers should make compliance a top priority and ensure that all staff members are aware of their responsibilities under the regulations. Regular updates should be provided to ensure that staff members are up to date on the latest regulations and guidelines.
Properly trained staff is essential for effective accounts receivable management. Healthcare providers should ensure that staff members responsible for managing accounts receivable are trained in the best practices for collections, follow-up, and communication with patients and insurance providers. Training should cover billing and coding guidelines, insurance claim procedures, and collection best practices. By investing in staff training, healthcare providers can improve the efficiency of their collections process and minimize the risk of denied claims. Properly trained staff can also help to maintain positive relationships with patients and insurance providers, which is critical for the long-term success of the practice. Training should be ongoing to ensure that staff members are up to date on the latest regulations and best practices.
Legacy accounts receivable can be a significant challenge for healthcare providers, particularly for those who have been in operation for a long time. However, implementing the seven (7) strategies discussed in this article can help providers in reducing legacy accounts receivable more effectively. Prioritizing accounts, verifying billing information, regular follow-up, negotiating payment plans, writing off uncollectible accounts, training staff, and staying current on regulations are essential for effective accounts receivable management. By taking a proactive approach in reducing legacy accounts, healthcare providers can improve their financial health, and reduce the risk of revenue loss.
Medical Billers and Coders (MBC) is a leading healthcare revenue cycle management company that offers legacy accounts receivable services to healthcare providers. With years of experience in the industry, MBC has the expertise and technology to help providers manage their outstanding balances effectively. Their services include prioritizing accounts based on their age, size, and collectability, verifying billing information to ensure accuracy, following up regularly with insurance providers, negotiating payment plans, and writing off uncollectible accounts.
By partnering with MBC for legacy accounts receivable services, healthcare providers can improve their financial health, reduce the risk of revenue loss, and focus on delivering high-quality patient care. To know more about our legacy accounts receivable services, email us at: email@example.com or call us at: 888-357-3226.