What is Accounts Receivable in Healthcare RCM?
Managing Accounts Receivable (AR) and a healthy cash flow is a major challenge for every healthcare professional and facility. In the healthcare industry, AR represents the amount that is due from insurance companies and patients.
To understand the AR status of a practice, “Days in AR “is computed, which is the average number of days it takes to collect payments that are due to the practice. The AR is then classified into buckets such as 0-30 days, 31-60 days, 61-90 days and so on separately for patients and payors. The aging AR bucket data indicates the performance of the billing department.
AR Management is a long process
There are numerous factors that result in claims denials, which should be analyzed in detail. A clear strategy should be developed to handle claims denials so that the re-submitting of accurate claims is done quickly. Further, there is a significant role that is played by the front office where insurance eligibility verification is done. The quantum of insurance coverage for the treatment sought for must be checked out before the patient visit. If there are copays for a treatment or procedure, it should be conveyed to the patient and collected upfront. This goes a long way in reducing AR on the patients’ side.
Healthcare revenue cycle management is a complex process. Adding to the complexity is the fact that rules and regulations as well as codes keep changing regularly. Unless the billing team is experienced and on top of these changes, accounts receivables are bound to increase.
Outsourcing your account receivable management to an onshore or offshore entity is beneficial for your practice. These companies have staff who are certified and up to date regarding the changes in the healthcare industry. They are efficient in analyzing the causes for your AR. Moreover, they are in constant touch with payors and will bring down your practice’s aging AR.
How can Bristol Healthcare help you?
Bristol Healthcare Services is an onshore and offshore outsourcing company whose team are experts in reducing your aging AR. The company has been serving healthcare professionals for over two decades by helping them to increase their revenue and expand their practice.
Our billing and coding team will
• Ensure complete insurance eligibility verification, so that patient dues are minimum
• Carry out accurate coding
• Submit error-free claims
• Identify denied claims, unpaid claims and low payments
• Follow up with payors systematically to get the claims paid up quickly
Talk to our experts today to see how we can serve you.