When you have a seamless accounts receivables management process in place, you can effortlessly improve the cash flow of your medical facility. That is because accounts receivable (AR) will make healthcare accounting flawless and enable you to identify AR issues and address them without delay. Here are the most common AR problems and ways to resolve them:
Unwanted Write-offs
Usually, the AR team does not care much to maintain payments, which are considerably less. Now, this harms the balance sheet of your healthcare facility because a couple of patients like to shell out payments in easy installments or negotiate with you to cut back on their medical arrears.
The Resolution: Your hospital AR team must endorse and analyze every aspect before writing off debt, no matter if the amount is high or low. All things must include in your books of accounts to make sure that your health facility is not heading towards financial loss.
Refusal of Insurance Claims
One of the biggest AR challenges is the denial of insurance claims. Based on a survey by the US Government Accountability Office (GAO) in the year 2011, it was found that healthcare companies could lose approx 10 percent possible profits in case their refusal management process is not sufficient or proper. Again, according to a report based on the findings of the Medical Group Management Association (MGMA), each hospital or healthcare facility must not have a refusal rate of over four percent.
The Resolution: Your AR team should evaluate every claim form before submission. It is necessary to meet the required guidelines and to maintain a follow-up of rejected claims. You should inspect all rejected claims and figure out what requires submitting.
Collection Issues
Collecting medical payments is not a easy task because of a number of stumbling blocks. However, it is important to be paid on time for the services rendered, to keep your finances in the pink of health. If there are major collection issues, you need to delve deeper to understand whether your healthcare firm has a collection culture or not.
The Resolution: To ensure a smooth, seamless AR process, you need to make certain that your health facility has a proper collection system. Your team should have the best tool for collecting unpaid amounts and ensure that your patient is at ease with the approach.
Bad Debts
Mounting bad debts is one of the greatest challenges of AR process. You need to collect all due payments during the complete revenue cycle. Else you may have to be prepared for write-offs
The Resolution: Your healthcare facility must collect important insurance data to understand the exact payment that can be expected from the insurer. This will help you educate your patient beforehand of his responsibilities.
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Final Thoughts
The functioning of your hospital or healthcare firm is complicated and dealing with various payments is not an easy task. That is why you need to detect the AR challenges of your hospital and address them based on the solutions mentioned here.
The Resolution: Your AR team should evaluate every claim form before submission. It is necessary to meet the required guidelines and to maintain a follow-up of rejected claims. You should inspect all rejected claims and figure out what requires submitting.
