Accounts Receivable Services for Healthcare Providers

According to J.P. Morgan’s report, “74% of healthcare providers take more than 30 days to collect payments from patients”. Also, “78% of healthcare providers struggle to collect over $1,000 within 30 days” because of inefficient in-house accounts receivable services.

Recovering unpaid bills (AR) quickly is a major problem for healthcare providers. It affects their ability to make money, resulting in higher AR days and bad debt. This puts sizeable pressure on healthcare organizations’ bottom line.

To avoid these issues, healthcare organizations are outsourcing their AR operations to healthcare accounts receivable services or revenue cycle management (RCM) companies. Commonly outsourced accounts receivable functions include AR follow-up, denial management, and collection operations.

What are accounts receivable services?

‘Accounts receivable services’ are a set of tasks and responsibilities undertaken by AR departments and teams to collect outstanding bills or dues (AR) on behalf of their organization.

For physicians, clinics, hospitals and health systems, we will discuss healthcare accounts receivable services that will help improve their AR collections. Additionally, we will provide useful information for those looking for a reliable accounts receivable outsourcing services company:

  • How to collect more AR, faster
  • How to minimize and manage accounts receivable (AR) efficiently
  • What AR tasks to assign to accounts receivable specialists
  • Medical accounts receivable (AR) services that grow collections
  • Cost of outsourcing to healthcare accounts receivable companies
  • Top AR software and more

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These topics will clear confusion about medical accounts receivable services. And paint a clear picture of the tasks, benchmarks, expertise and costs associated with healthcare accounts receivable services.

Collect More Dues, Faster – Try our Medical Accounts Receivable Services

Streamlined medical accounts receivable services, adhering to industry best practices, help maximize debt collections.

But AR process streamlining/restructuring is expensive. It requires investment in automation tools, software, along with the services of dedicated AR resources to follow-up & collect dues. 

That’s why small and medium-sized medical practices tend to avoid reforms to their healthcare accounts receivable services completely. They rely solely on traditional in-house accounts receivable (AR) processes for collections, instead of looking to outsource medical accounts receivable services.

But enjoying the benefits of having a streamlined medical accounts receivable services team does not need to be expensive, at least our clients know that. 

Sunknowledge’s Accounts Receivable Services Credentials

  • Invoices processed/FTE/month – 1.1K to 1.2K
  • AR follow-ups/FTE/day – 50 to 55
  • Denials handled/FTE/day – 40 to 45
  • Average claim dollar value – $350 to $400
  • Minimum first-pass rate – 93%
  • Percentage of High dollar claims processed/month – 38%
  • Small to medium dollar-value claims processed – 65%
  • 80% lower cost-to-collect 
  • 97% growth in collections
  • 30% A/R reduction in 1 month
  • <1% write-offs
  • Average AR collections/month – $250 to 300 million
  • Nearly two decades of expertise in health care AR analysis & management
  • Our top specialties for AR – Ambulatory Services , Radiology, Cardiology, Urgent Care, Mental health, Oncology, Immunology, Neurology, Sleep Therapy, DME, and more

Our skilled FTEs in healthcare accounts receivable (AR) services ensure timely payments and recovery of old and recent receivables for healthcare organizations. Additionally, they help save on labor and admin expenses.

Skills and expertise of Sunknowledge’s Accounts Receivable specialists:

  • Bachelor’s degree or equivalent
  • Skilled in healthcare accounts receivable services – AR management, follow-up, cash posting, collecting money owed from patients, insurers and health plans including BCBS,  state Medicaid programs, etc.
  • Sound computer skills (MS Word, Excel, PowerPoint, etc.)
  • Proficient in basic math skills
  • Sound oral and written communication skills
  • Ability to manage time, and excellent attention to detail
  • Sense of urgency, organized and energetic team players who can work in both a team environment and on their own
  • Sound knowledge of insurance, state and health plan guidelines & policies
  • Experience in collecting from patients and navigating different payer portals

Did you know?

  • For hospitals, bad debt as a percentage of gross revenue increased from 4.6% in 2019 to 4.9% in 2020 (highest since 2016).
  • One third of all physicians spend 20+ hours/week on administrative work including accounts receivable operations.
  • 23 million US adults owe medical debt amounting to at least $195 billion.

Don’t Write it off yet – Let Healthcare Accounts Receivable Services Collect it for You

Healthcare accounts receivable services are complex. They require a considerable time investment in checking denied claims, following-up with debtors, and completing crucial AR tasks. Other daily responsibilities include invoicing, dispute resolution, denial management, collection, payment posting, and reporting.

Other than these time-sensitive tasks, factors like expertise of staff, level of optimization, and changing technology, make healthcare accounts receivable (AR) management a difficult task to manage in-house. Healthcare accounts receivable companies and their experienced AR specialists can help avoid this.

We have been able to recover receivables for clients that they had considered writing off. For details, follow the link to RCM leaders’ reviews or simply ask us for references.

For physicians and healthcare providers, including non-profit organizations, that are looking to outsource accounts receivable operations and improve efficiency of their collection process with help of healthcare accounts receivable services – here’s a list of healthcare accounts receivable services and tasks you can delegate to our AR specialists to grow your collections and reduce costs:

  • Work on accounts receivable (AR) to ensure client compliance
  • Review account information, correct errors, create invoices, receive payment, match billed and collected payment and complete other admin tasks
  • Follow-up & send reminders for overdue payments
  • Ensure proper claim submission and payment through review and correction of claims
  • Maintain required knowledge of payer updates, record payment & money owed figures and process adjustments to ensure accurate claims
  • Track and process payments and adjustments, record transactions, maintain payment details, and update account statuses accurately and timely
  • Work with billing, coding and claim submission teams to gather additional information
  • Develop repayment & recoupment plans, and complete other accounts receivable services
  • Help create accurate and detailed reports on outstanding balances, payment trends, collection progress, etc., and complete accounts receivables-related activity coding
  • Escalate stalled claims and other issues that may impact financial health, to manager

[See fellow RCM professionals’ reviews about us]

Following-up on Dues Can be Tiring – Outsource Medical Accounts Receivable Services

Healthcare accounts receivable companies that provide outsourced medical accounts receivable services can be a game changer for healthcare providers, especially HCPs that have revenues north of $100 million, or need to process a large number of invoices every month.

This is because in-house healthcare accounts receivable services require a team of AR analysts,

collectors, credit risk analysts and more, making it expensive than the cost to outsource medical accounts receivable services. Also, in-house AR teams can have limitations in the number of invoices they can process and follow-ups they can complete every month.

Moreover, healthcare organizations acknowledge that despite spending hours following up to recover outstanding receivables, they cannot guarantee 100% collection. This is because of factors like type of medical specialty, insurer policies, type of insurer, health plan guidelines, and more.

Why Outsource to Sunknowledge’s Healthcare Accounts Receivable Services:

  • Dedicated account manager & FTE AR specialists experienced in healthcare accounts receivable services
  • Transparent and personalized reporting on KPIs, cash and assets
  • Implementation of healthcare receivables management best practices
  • Superior customer service to maintain sound relation with patients and payers
  • Persistent follow-up till resolution, enabling maximum collections
  • Sound understanding of payer-specific recovery processes from 18+ years of industry experience, especially from difficult-to-collect payers like BCBS, state Medicaid programs, Medicare Advantage, etc.
  • No adjustments or write-offs without client consent
  • Flexibility to quickly scale-up or scale-down

Medical Accounts Receivable Services that Improve Providers’ Collections

At healthcare organizations, medical accounts receivable services teams spend hours every day in completing AR management tasks. During these AR tasks, teams may need to write off receivables or resubmit claims. This can occur before or after following-up, scheduling invoice chasing times, and reviewing denied claims.

This method of collecting accounts receivable (AR) is outdated. Particularly because of rising healthcare costs, shrinking margins, staff shortages, and recent advancements in AI technology.

Some of the top contributors to claim denials, bad debt and ultimately, growing AR headaches in outdated or legacy accounts receivable services, include:

  • Complex billing systems that lack integration and interoperability features
  • Errors in medical billing, coding, and other pre-AR processes
  • Lack of experienced staff in accounts receivable collection operations
  • Patient financial barriers
  • Lack of automation in accounts receivable services

To avoid these contributors to medical/healthcare AR management problems, healthcare providers should put in place an AR workflow that streamlines receivable management and improves collections by leveraging:

  • AI & automation tools to help with manual tasks
  • Services of experienced accounts receivable specialists, and
  • Implementation of healthcare AR management best practices

Can Accounts Receivable Outsourcing Companies Collect More?

Accounts receivable outsourcing, especially by hospitals and large healthcare organizations, has proven to be a viable alternative to managing AR collections in-house. Because of their advantages to scale and cost-effectiveness, outsourced accounts receivable services often have significant competitive advantage over in-house AR teams.

Benefits of Outsourcing to Sunknowledge’s Healthcare Accounts Receivable Services:

  • Lower direct expenses by reducing payroll costs and benefits
  • Lower AR Days and cost-to-collect
  • Higher revenue realization rate owing to effective healthcare AR management strategies
  • Improved Collection Effectiveness Index (CEI)
  • Access to experienced health care AR specialists without the need to train or re-hire
  • No requirement for office space or equipment
  • Collection rate growth resulting in improved cash flow and collection rate
  • Reduced claim denials from claim scrubbing and denial management expertise

Accounts Receivable Outsourcing Cost for Healthcare Organizations

The cost of outsourcing to AR collection services depends on the pricing models offered by healthcare accounts receivable companies. Some of the most common pricing models offered by outsourced medical AR collections services include:

  • Percentage/Commission-based – Calculates charges as a commission or a percentage of collections
  • Monthly payments – Calculates charges based on a flat monthly fee
  • Contract – Calculates charges based on an annual fee or a long-term contract

At Sunknowledge, we charge healthcare organizations only 1% of collections for the comprehensive range of services of our experienced AR specialists.

How Sunknowledge Has Been Transforming Accounts Receivable Operations
  • No write offs or adjustments without client consent
  • 80% labor cost reduction
  • 30-day no-cost transition
  • $5 million insurance coverage
  • Specialized recovery approach
  • Persistent but courteous follow-up till resolution
  • Quick turnaround time
  • Intuitive payer-specific recovery process
  • High dollar claims collection expertise
  • 100% HIPAA-HITECH compliance
Accounts Receivable Software We Use
  • EPIC
  • CureMD
  • eClinicalWorks
  • AdvancedMD
  • Brightree
  • Kareo
  • Allscripts
  • Apex EDI
  • OPIE and more

Sunknowledge’s Accounts Receivable Services for Improved Cash Flow

  • Don’t write off dues yet – Let our medical AR specialists collect them for You
  • Improve your accounts receivables turnover
  • And cut labor and admin expenses by 80%

Our data-backed work plan based on trend analysis of your AR reports will help drive efficiency and the next level of growth for your accounts receivables collections.

Improve AR collections and transform your healthcare accounts receivable services by taking the first step — Contact us now.

If you think it’s worth a shot, fill out the form below — we have a 30-day (no-cost) transition period ready to set your plans in motion.

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