However beautiful the strategy, you should occasionally look at the results. – Winston Churchill
We believe you have some strategies. They have helped you in designing effective care management solutions, building healthy clientele and offering viable payment options. And you, like other healthcare providers, have invoices waiting to be paid. In the past few years, you have seen claims expecting payment, but getting denied, then outdated and debts turning bad in the end. In that case, your strategies, clearly, are not helping you much in collecting what you deserve and flourishing as you should be. So, what’s the solution?
There are myriad options you can choose from, but starting with accounts receivable analysis might make your task easier. It is because:
~ Effective account management is essential to consistent cash flow. Most of the time the revenue cycle, in a healthcare facility, is prolonged because of ignorance and inefficiencies. Cleaning up AR from time to time not only helps to manage accounts effectively but also facilitates detecting issues that are better addressed immediately. With accounts receivable analysis you get to know what you better get rid of and what you should focus on to optimize your revenue opportunities.
~ With a proper accounts receivable analysis, you get a chance to detect the errors being repeated by your employees that are making your revenue suffer. Insurers, generally, ask for perfect compliance with the industry protocols and standards. Errors in coding and billing operations, late submissions, ignorance in follow-ups and inadequate training of employees are the common factors that hinder financial growth in healthcare centers.
~ In addition to that, you have under coding or billing. Now, whether you are a generous healthcare provider who doesn’t want to charge the clients is beside the point; under coding or billing, in reality, is seen as misrepresentation of the facts, hence it is a violation of the rules. So, under billing is not as harmless as it seems. It can potentially hamper the progress of work and damage your reputation as well.
~ Accounts receivable analysis done by a professional team will not only help you find and rectify the glitches, but can also effectively shorten the revenue cycle. By providing a complete report on your revenue cycle management, errors in the practice and goals for improved collections just within 2-3 working days, they can actually reduce your accounts receivable days.
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