Most people struggle with the management of their Accounts Receivable. Do you also have such a problem? If that’s the case, you can get help with healthcare Accounts receivable management. The struggle is triggered by a lack of resources, leading to the accumulation of claims that ought to be processed. Without skilled resources, the number of claim denials will only increase. This is why it’s important to have several qualified resources working in the Practice Management System. Involving experts with extensive knowledge on how to swiftly and properly analyze an account’s historyand to file an appeal for denied claims is necessary as it increases cash flow and even reduces aging A/R.
What Exactly is Accounts Receivable Management?
Physicians and dentists in the private practice struggle with healthcare accounts receivable management. The patient shoulders the healthcare financial burden of increased copays and deductibles. However, doctors without an efficient collection process find themselves in trouble. Neglecting accounts receivable management leads to poor cash flow as well as lost revenue.
This begs the question of what is accounts receivable? Or what is the aim of Accounts
Receivable Management, and how important is it?
Accounts receivable (AR) stands for the revenue a healthcarefacility has billed for, but it’s not collected yet. In other words, it’s the amounts due from your patients, guarantors, or the insurance companies.
What is the Ultimate Goal for Healthcare Accounts Receivable Management?
The main goal for healthcare accounts receivable management is to enhance flawless cash flow to a medical facility by reducing the collection period and related costs.
You can hire accounts receivable management healthcare experts since they create an uninterrupted process for AR management from the beginning to the end. This process begins when the patient books an appointment to when they settle their last payment.
Why Should you Improve your Accounts Receivable Management?
Did you know that the highest percentage of health officers overlook a growing Accounts Receivable balance only to suffer a big blow in the long run. This is because unmanaged AR only affects cash flow negatively and leads to loss of revenue.
However, high deductible insurance plans’ popularity has forced health professionals to divert their attention to Accounts receivable management. Health specialist mostly depends on payments from patients to pay most of their bills. As a result, giving more attention to coding, billing, plus collecting practice functions is inevitable.
Medical Costs Shifted to Patients
For the last few years, it’s evident that insurers have literally shifted the cost burden to patients through copays and higher deductibles. Most patients have been lured into falling for low-cost insurance plans, not knowing they come with serious implications. They only get to know this once they get to see the bill.
In most cases, a health specialist must strive to get money from a patient for other discretionary expenditures unless if a patient has a health saving plan. As usual, patients are unreliable when it comes to paying hefty medical expenses.
Since there is no hope of consumer habits changing, it’s obvious that low-cost and high deductible plans will proceed. As a result, a medical expert must increase their billing and account receivable practices to collect payments from patients to create an uninterrupted cash flow and increase revenue in their business.