In the healthcare industry, accounts receivable (AR) days are a critical metric that measures how long it takes for a healthcare provider to get paid for the services they provide. Long AR days can have a significant impact on a healthcare provider’s cash flow, making it difficult to operate and grow their business.
There are a number of things that healthcare providers can do to reduce their AR days and get paid faster. In this blog post, we will discuss some of the most effective tips for reducing AR days in healthcare.
Tips for Reducing AR Days in Healthcare
1. Submit Clean Claims:
The first step to reducing AR days is to submit clean claims. This means that your claims are accurate and complete, and they contain all of the necessary information. Clean claims are more likely to be processed quickly and paid on time.
2. Track Your AR:
It is important to track your AR on a regular basis so that you can identify any trends or problems. This will help you to identify areas where you can improve your billing process and reduce your AR days.
3. Follow Up On Rejected Claims
If your claims are rejected, it is important to follow up promptly to resolve the issue. This will help to ensure that your claims are processed quickly and paid on time.
4. Set Up Payment Plans with Patients
If a patient is unable to pay their bill in full, you may be able to set up a payment plan with them. This will allow them to pay their bill over time, which can help to reduce your AR days.
5. Encourage Patients To Pay Online
Online payments are a convenient and secure way for patients to pay their bills. This can help to reduce your AR days and free up your staff to focus on other tasks.
Outsource Revenue Cycle Management:
Many healthcare providers find it challenging to manage their revenue cycle in-house. Outsourcing revenue cycle management can help reduce AR days by leveraging the expertise of a third-party vendor.
Here are some additional tips that are specific to the healthcare industry:
- Verify insurance eligibility before providing services. This will help to avoid denials and delays in payment.
- Request pre-authorization for procedures that require it. This will help to ensure that your claim is processed quickly and that you are paid the correct amount.
- Track your claims and follow up with payers as needed. This will help to ensure that your claims are processed in a timely manner.
- Be patient and persistent. It can take time to collect payments from patients and payers. Don’t give up if you don’t get paid right away.
Managing accounts receivable is critical for maintaining a healthy cash flow in the healthcare industry. By implementing these tips, you can reduce the number of days in AR and get paid faster, ensuring the financial stability of your organization. Remember to verify insurance information, use electronic claims submission, implement clear billing processes, follow up on unpaid claims, and offer multiple payment options to reduce days in AR and improve your cash flow.
Outsourcing your A/R Follow-up services to Allzone Management Services Inc helps healthcare providers & practices to reduce AR days. Our team follows up on pending claims, investigates reasons for denials, tracks outstanding balances, and provides regular reports to keep you informed.