A few years ago, the federal government started encouraging American hospitals and physicians to adopt electronic medical records. The aims were simple. They were to improve efficiency and safety in healthcare management, facilitate care coordination and develop a seamless flow of information for better healthcare infrastructure.
With great technology comes great responsibility. Today, all the healthcare professionals working within this digital infrastructure are expected to have an elaborate set up for medical coding and billing, processing claims, and handling payments. Inefficiency or ignorance in the process often leads them to denials, penalties and increasing losses.
So, dear healthcare providers, if increasing bad debts have become your nemesis, consider these 3 instant ways to reduce your accounts receivable days.
Eliminate backlog with accounts receivable analysis: Checking a patient’s insurance eligibility, collecting co-pays, appropriate recording of the therapeutic services, error-free medical coding and billing, processing claims, and keeping track of them – all are important parts of revenue cycle management. Even little hiccups in the process can cause delays and denied reimbursement. So, a thorough analysis of the system is always recommendable as it will help you to detect all the issues in the practice and determine the possible solutions for them.
Clean up your accounts receivables on time: Matters little whether the amount of your AR is made up of high or low balance, sooner or later they will become a major pain if you make them linger. So, AR cleanup is better done at regular intervals to prevent things from getting out of control. So, as soon as you detect the issues in your accounts receivable management process, divide up your task. Concentrate on the old invoices; cleaning up old accounts receivable must take priority over other actions.
Opt for smarter solutions to handle denials: Fixing issues in denial management often requires a significant amount of time and work. The overall cost of the denials includes administrative expenses and time spent in AR with the lost payments. But there are purpose-built software applications that can handle denied claims without wasting your precious money and time. By resolving issues in RCM with rapid automation, you ensure three things for your hospital: automatic verification of the root cause of denials, quick reimbursement through proactive AR follow-ups, and improved productivity in the workplace.
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