One common thing that bothers healthcare providers is poor accounts receivables management and the unacceptable cash flows resulting thereby. Healthcare providers can focus on providing quality healthcare only when they have proper revenues and problems in accounts receivables result in loss of revenue. The revenue cycle management of a healthcare provider involves achieving the shortest collection period which ensures sufficient cash flow and effective management of the healthcare facility. Accounts receivable management is a significant part of the revenue cycle management and it is essential that the accounts receivables are managed effectively to ensure the bottom line is not impacted negatively. Here are some sure shot ways to control the accounts receivables of a healthcare facility and manage the facility’s financials effectively.
- Establish A/R process: According to the RCM services providers, the first step to bring accounts receivables under control is to establish the A/R process in the facility. Records should be maintained on a weekly and monthly basis with details of days in accounts receivable and the balance amount for each account. RCM services professionals say this will help in identifying the unpaid accounts in time along with their aging.
- Communicate effectively: One thing that plays a critical role in improving the revenue cycle is the communication regarding the out-of-pocket responsibilities to patients by providing a pre-service estimate. RCM services experts advise healthcare facilities to provide a rough estimate to patients about their obligations before rendering services so that they are aware of their responsibility and can make payments accordingly. Patients should also be informed about the different options they have to make their payments which enables and motivates them to pay on time.
- Understand the payers: It is common that some insurance payers pay slower when compared to others as different companies have different rules. It makes sense for the healthcare facilities and medical billers to understand the rules and procedures followed by various insurance payers to correctly follow their guidelines and get timely payments.
- Follow up regularly: The medical billing team should review each and every claim before final submission and ensure it is adhering to the payer’s guidelines so that the denials are minimized. For the denied claims there should be a denial management process in place and such claims should be followed up regularly.
- Reconcile bank statements: Healthcare facilities must reconcile their bank statements periodically to cross-check if all the accounts and transactions are accurate and ensure that there is no scope for fraud and errors. This will also help in maintaining accurate accounts receivables records thereby leading to perfect accounts receivable management.
One of the best options to get relieved from the headache of accounts receivables management is hiring third-party RCM services providers who have the experience and expertise to tackle it.