Is Your SNF Billing System Leaving Revenue on the Table?
It’s the year’s final quarter, and your Skilled Nursing Facility (SNF) is struggling with aged accounts receivable (AR) from months earlier. The services were provided, and the patients were cared for, yet a substantial portion of your revenue remains tied up in accounts receivable. Your facility isn’t alone––many SNFs across the industry are missing out on significant revenue due to inefficient SNF Billing processes and inadequate AR management.
What if your facility could reclaim much of that revenue before year-end? Industry data shows that nearly 30% of uncollected SNF revenue is trapped in old AR––leading to financial strain during the final quarter. Can your facility afford to lose this potential income? More importantly, are your current billing practices actively contributing to this problem?
Why Precise SNF Billing is Essential for Last-Quarter AR Recovery
SNF billing plays a pivotal role in ensuring a facility’s financial health. However, claims can be delayed, denied, or left unaddressed without optimized billing practices–leading to increasing AR. As your AR ages beyond 90 to 120 days, the chances of successful recovery dwindle significantly. Studies show that recovery chances drop significantly when AR extends past 120 days––with only around 10-20% of the amount typically being collected. This makes the last quarter a critical period for revenue recovery, where every claim counts. Facilities that optimize their billing workflows can see up to a 15% increase in collections by the year’s end.
Days in AR: The Key to Efficient Old AR Recovery in SNF Billing
Days in Accounts Receivable (Days in AR) is one of the most critical KPIs for any facility focused on AR recovery. This metric tells you how quickly your SNF is collecting payments, giving insight into the efficiency of your billing process. The goal is to keep your Days in AR below 50 to ensure timely collections and prevent AR from aging beyond the point of recovery.
- Formula: Total AR ÷ Average daily charges = Days in AR.
By tracking this KPI and regularly analyzing it, your SNF can pinpoint problem areas, such as delayed claims, and take immediate action to resolve them. In the case of old AR recovery, improving days in AR can be the difference between a successful year-end and leaving money on the table.
Optimizing SNF Billing Services for Last-Quarter AR Recovery:
To maximize old AR recovery in the final quarter, your SNF Billing Services must focus on efficiency and precision.
Here are 4 tips to enhance your billing process:
- Audit Your Billing Codes: Incorrect coding can lead to rejected claims, extending the time to collect payments.
- Automate Billing Processes: Advanced billing software can help speed up claim submissions, reduce errors, and manage denial follow-ups.
- Focus on Denial Management: Address denied claims promptly and resubmit them with correct information to avoid further payment delays.
- Leverage Data Insights: Regularly track your Days in AR to spot bottlenecks and improve your billing cycle.
Outsource SNF Billing to MBC for Stress-Free Old AR Recovery:
For many Skilled Nursing Facilities (SNFs), internally managing billing and old AR becomes increasingly challenging–especially in the year’s final quarter. The complexity of navigating claim submissions, denials, and evolving regulations often leads to delayed payments and lost revenue. This is where Medical Billers and Coders (MBC) can make a significant impact. By outsourcing your SNF billing services to MBC, you gain access to a team of experts specializing in efficient, accurate billing and AR recovery.
Here’s how MBC can benefit your facility:
- Accuracy & Collections: MBC ensures precise billing to maximize collections and minimize errors.
- Data-Driven Insights: Leverage analytics to benchmark performance and improve your financial outcomes.
- Streamlined Documentation & SOPs: Consistent, well-structured processes produce measurable, efficient results.
- Dedicated Account Manager: Benefit from transparent communication with regular progress updates.
- Value-Added Solutions: Custom dashboards and forecasts offer actionable insights for future growth.
Ready to Recover Your Aged Accounts Receivable And Streamline Your SNF Billing Process?
Contact MBC today to explore how our SNF billing services can help maximize your revenue recovery in the final quarter.
FAQs:
Q: What is old AR recovery in SNF billing?
A: Old AR recovery in SNF billing refers to collecting overdue payments on accounts receivable that have aged beyond 90 or 120 days. It involves denial management, resubmitting claims, and optimizing billing processes to recover long-unpaid revenue.
Q: What are Days in Accounts Receivable, and why is it important?
A: Days in AR measures how long it takes your SNF to collect payments after services are provided. Lowering this metric improves cash flow and helps recover old AR faster.
Q: How can SNFs improve their old AR recovery?
A: Focusing on KPIs like Days in AR, addressing denied claims promptly, and optimizing billing processes through automation can significantly improve old AR recovery.
Q: What is the CPT code for SNF discharge?
A: The CPT codes for Skilled Nursing Facility (SNF) discharge services are CPT 99315 and CPT 99316. CPT 99315 is used for the discharge day management of a patient from an SNF with a stay of less than 30 minutes, and CPT 99316 is used when the discharge day management takes 30 minutes or more.
Q: What should I refer to for SNF billing guidelines and compliance?
A: For SNF billing guidelines and compliance, refer to the Centers for Medicare & Medicaid Services (CMS), the Medicare Learning Network (MLN) for educational resources, and state-specific Medicaid guidelines for local regulations.
