Is your AR exceeding 1.5 times your monthly charges? If yes, your practice needs to make significant changes to get account receivables back on track.
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- Practices first need to check their 0 to 30 days AR and find out what percentage this category consists of their total AR
- Next, they need to consider 30-60 days AR and check the payer mix for this category. If Medicare can be seen in this category, it becomes important for providers to contact their billing department and get the unpaid claims cleared
- Billing departments should have an organized system for following-up on unpaid claims after 30 days. Providers should send error-free, double checked information to the billing department to avoid instances of claim denials
- Practices also need to see how they are being paid by the insurance companies. In case they are falling outside the specified timelines, changes need to be made
How many days in AR your claims are sitting before being paid?
Practices should have a clear idea of how many days in AR are their claims sitting before they are paid. They need to take their total AR, divide it with monthly charges and multiply the result with number of days for a particular month. Providers need to set a goal of under 30 days. Usually, private medical practices are around 90 days for which a lot of follow-up is required with the billing department to clear unpaid claims.
As a provider, you need to ensure that only correct information is being supplied to your billing department. Your billers should be well-trained in handling billing complexities and billing out quickly. By taking the right measures, practices can get a major portion of their AR paid under 30 days from the patient’s date of service.
AR management is extremely vital for the financial strength of a medical practice. To ensure 95-98% payment, practices need to prevent AR going over 90 days. There are certain measures that can be implemented to make this happen:
- Payer interaction needs to be established. This will ensure that delays are avoided and claim resubmission is done in a speedy manner
- Role of health IT is also important in reducing AR time and days. It also plays an important part in reducing errors in electronic claim submission
Healthcare reforms have increased workload on physicians and to avoid any disruption in cash flow, it has become important to have a team of skilled billers and coders who will make sure that every claim is submitted on time and payment is received for all services. Due to time constraint and lack of skilled resources, many practices prefer outsourcing their billing requirements to companies like Medicalbillersandcoders.com.
MBC has been handling revenue cycle of various practices across 50 states in the US. A skilled team of coders and billers is assigned to practices for handling error-free claim submission procedure with the use of latest technology. Our aim is to ensure healthy AR, maximum revenue and minimum claim denials for your practice.