AR is defined as the medical Accounts Receivables. It is important to keep an account of the medical activities that take place so as to have a hold on the monthly performance of a practice. A successful medical practice needs reports, tables and metrics to make improvements in the health industry. Many a times the staff assigned to perform this job is unable to manage the AR, which results in degradation of performance. Thus, giving the hardworking doctors reasons to feel frustrated. At the end of each month, it’s easy to measure the effects of cash flow by following and implementing some easy steps.
Keep a Tab on the AR Age
The AR age should always be checked so that it doesn’t cross the time limit and this way it becomes easier to collect payments too. It can be calculated by computing the average daily charge for the past month and dividing it by the total number of days in those months. The insurance companies tend to pay up after around 14 days after receiving a claim. The medical billing and collections for an average performing department takes about 40-50 days.
Aging Bucket Method
Another measure to calculate the AR is known as the aging bucket. It is said to be the most effective cost calculation method. To calculate it, a report should be prepared accounting to the dollar amount in each aging bucket and then convert each bucket to a percent of total AR. It is also essential to track all denials received through the payers as it helps to identify errors and keep them from happening in future. The net collection rate is defined as the percentage of total potential reimbursement that is collected from the total allowed amount that calculates the net collection, payments, charges, etc. Tracking helps in viewing the performance of the staff and if the net collection comes out to be low then a problem could occur with claims, patient statement, etc.
Send Timely Statements to Payers
Sending statements on a regular basis can help in collection of money. There are many medical requirements generated within the house but around 70% claims only are said to be billed. The remaining 30-40% is given to the AR team as billers lack the strategy of quick and efficient performance.
How Outsourcing can Help?
By outsourcing the medical billing, the overall efficiency of the department is said to rise and patients will also benefit from it. Are all the patients insured? Are the consultation charges for the particular disease covered under his insurance? It is a time taking job to know the details of what a patient’s insurance policy covers. Many medical justifys do not even perform verification, and that ultimately leads to claims denials and non-payments.
If the companies start the service of eligibility verification along with the AR balance collection then it will be easier for preparing a second visit. The overall performance and business of a medical practice will increase if billing services are outsourced to companies like MedicalBillersandCoders.com. They are amongst the largest consortiums of billers and coders in the US that offer customized billing services to over 42 specialties.