One of the most difficult situations that any healthcare institution encounters is maintaining a stable financial flow. In general, Hospital Accounts Receivable is a phrase that refers to the amount of money owed by a customer to the company. Similarly, in the healthcare industry, Hospital AR refers to a patient’s account balance that is due for payment within a year.
Hospital Account receivable services include the management of insurance, write-off, and bad debt reports, as well as collection analysis and ratio analysis. It also includes an examination of insurance contracts to ensure that healthcare providers are properly reimbursed. This post will teach you how to examine and evaluate data.
A competent Hospital Accounts Receivable management can turn a negative cash flow into a positive cash flow in medical practice. So, to keep the Hospital Accounts Receivable process running smoothly, use the strategies outlined in this blog.
Is your healthcare organization experiencing inadequate cash flow as a result of poor account receivable management? This is not unique; the account receivable problem has plagued healthcare accounting, impeding hospitals’ objectives and aims.
To maintain consistency, below are some of the most common Hospital Accounts Receivable issues and their solutions:
Challenge1: Insurance Claim Denial
Denied insurance claims are one of the most predictable accounts receivable issues. According to a survey done by the United States Government Accountability Office (GAO) in March 2011, healthcare organizations can lose up to 10% of potential income if their denial management procedure is poor. According to the Medical Group Management Association (MGMA), every healthcare organization should have a denial rate of 4%.
Your Hospital Accounts Receivable management team must carefully analyze each and every claim form prior to submission in order to meet the requirements and maintain track of refused claims. You must look into the refused claims and figure out what has to be presented.
Challenge2: Unnecessary deductions
Often the Hospital Accounts Receivable management staff does not keep smaller payments. This eventually has an impact on the hospitals’ balance sheets. As some patients are willing to pay in installments or may collaborate with you to lower their medical debt.
Before writing off anything, the team must authorize and review everything. Whether the amount is higher or less, everything must be recorded in the books of accounts. In this manner, you may assure that your company does not lose revenue.
Challenge3: Choose the Best Process
Every healthcare organization is unique, as are their payment collection techniques. For example, two hospitals may appear similar on the surface, but they will have distinct staff, patient demographics, account dispositions, and information system capabilities, allowing them to determine which collection technique is practical for their facility.
You must comprehend your process and the situations that may arise, and then pick which collection strategy will best suit your healthcare organization.
Challenge4: Culture of Collection
Collecting fees is not a favorite pastime of healthcare providers, whose primary responsibility is to deliver great care to their patients. However, receiving payment for services performed is critical to maintaining a profitable practice and continuing to offer care.
In order to prioritize your accounts receivable, your healthcare organization must cultivate a culture of payment collection. You must equip your staff with the appropriate payment collection technology so that your patient is not dissatisfied with the service.
Challenge5: Unmotivated Employees
Every member of your company, from doctors to administrative personnel, should be enthusiastic about their work and grasp your organization’s mission and goals. If your workforce is not performing correctly or is not taking your goals seriously, you will see a negative influence on your healthcare company.
The best solution is to outsource Hospital Account receivable services to a reputable organization that is an industry expert and will diligently work on your needs. Hiring a first-rate administrative staff is difficult and expensive, but outsourcing your healthcare accounts receivable gives you access to innovative technology and dependable support.
Key takeaways for Hospital Accounts Receivable
The healthcare industry is complex, and managing multiple duties is difficult. Find an expert in the outsourcing business; it will be your greatest bet if you want to achieve a streamlined Accounts Receivable process.