Continuous cash flow is needed in order to smooth the running of your practice and an effective revenue cycle is crucial in order to manage goof finances. Things such as investing in new technologies, managing the compensation of physicians, and keeping records are given the capability to healthcare providers, which is a part of the healthcare revenue cycle. Management of the revenue cycle is essential to increase the collection efficiency and decrease the Accounts Receivables (A/R) time period. Knowing the business model and optimization of accounts receivable support you to collect more cash and solidify your working capital. Let us understand ways to optimize AR and collect more revenue from your aging AR.
The process of the healthcare revenue cycle includes protecting collection efficiency and supervising the AR time period. With an optimized revenue cycle, money comes in rapidly, with lower exercise. Each and everyone has a part, from nurses, physicians, medical accounting staff, and administrative workers to other clinicians.
Build the Healthcare Revenue Cycle more Patient-Centric
Building the healthcare revenue cycle more customer-centric you are able to distinguish your administrative and clinical work. This is expected to enhance the experience of both clinicians as well as patients. After confirmation of the patient’s appointment, one of the staff members is informed and can start checking the required insurance documents and eligibility. This allows the patient to pre-pay which will curtail collection costs and lower the risk of bad debt exposure.
Providing thorough Training to Staff
In order to maintain proper workflow, it is necessary to provide thorough training to your staff. Medical billing is an integral part of the healthcare industry and it is compulsory to have proper work allocation among staff to maintain workflow. As far as medical billing is concerned, proper staff training is required to optimize AR and smooth financial operations.
Use of Data Analytics
The use of innovative technology in the healthcare industry is very common nowadays. As the global healthcare expenditure is increasing it is necessary to upgrade systems accordingly. According to Deloitte, the global healthcare expenditure is predicted to expand with a CAGR of 5.4% from 2017 to 2022. With the help of data analytics, it is easy to track billing records, and also it reduces the time spent per bill that will help you to accomplish better financial records.
Have an effective strategy for handling and lowering rejected claims According to the American Academy of Family Physicians (AAFP), the average claim denial rate all over the healthcare industry is 5% to 10%. When denials are permitted to compile, there are chances to miss the opportunities for the collection that leads to aging AR. Therefore it is important to have an effective strategy for handling and lowering rejected claims.
Apart from this, it is also necessary to analyze the reasons behind rejected claims and think whether there is a root cause, which can be excluded to cut down on denials. One entry point for receiving claim denials instead of multiple entry points helps with constant data collection, which can be helpful to identify the origin of reasons behind claim rejection.
By considering these methodologies healthcare professionals can optimize accounts receivable and collect more revenue from your aging AR.