How to minimize the accounts receivable challenges in this digital era? How can you collect more in less time? In the face of economic disruptions, lab practices are facing unprecedented difficulties. It’s time to take an initiative to keep your practice going in these uncertain times. Steady cash flow and account receivables follow-up in this need of the hour is an important aspect. It helps you to keep pace with the fastly evolving healthcare industry and the digital world.
Your staff must be efficient enough that can streamline the payments without disrupting the flow of the revenue cycle. They must have the ability to analyze and identify the claims that are listed in an aging report so they help you get the reimbursements. An efficiency A/R cycle covers;
- On-time recovery of claims.
- Proper follow-up of rejected claims.
- Provides financial stability to the medical practice.
- Reduce time for which the accounts’ payments remain outstanding.
- Ensure claims are timely received.
- Claims never go missed.
Many lab professionals end up making grievous errors during handling the A/R procedures despite their importance in ensuring a healthy RCM. The following are the most common A/R management mistakes that you must avoid;
Biggest A/R Management Errors
Write-offs contribute more towards rejections, however, not all of them are necessary. That’s the reason, each claim must be thoroughly reviewed till you are completely assured. Sometimes, payment options remain unnoticed by the staff. Consequently, they have to pay for it from their pocket and face huge denials.
Wrong Collection Process
When your staff goes with a single strategy for both claim management and collection, they face disrupted business profitability as this strategy may never go right. There are many better ways to manage A/R depending on how every lab facility is different and unique from others. Without comprehending the whole procedure, analyzing the risk involved in AR management, and strategizing without knowing can only destroy your business’s future drastically.
No A/R Management
It is easy to understand seeing the payment collection in the positive faith of providing care and quality treatment to your patients. But having this faith is not enough for the economical losses your lab facility faces because of ineffectively handling the A/R cycle and bad debts. Lab professionals must prioritize the accounts receivable to ensure a smooth flow of money.
Tips To Avoid The Common A/R Management Mistakes
When you approach the A/R cycle differently, this will help you mitigate the impact of the expensive mistakes that drain your practice’s revenue badly. Here are the following tips that can help you ensure timely collections and enhance your business efficiency.
Efficient Management & Frontend Staff
You must make sure your staff is well trained and have in-depth knowledge to tackle the problems that are leading to backlogs. Moreover, they are dealing with insurance agencies and patients directly through multiple modes of communication. It is highly crucial to quickly discover the loopholes by communicating with them periodically so your A/R days would not get delayed. Observe the inadequacies, check the workflow, and resolve the issues on time to reduce the A/R days and assure timely collections.
Hiring & Training Of Professional Staff
For maximum accuracy and smooth processing make sure you have recruited the right person for your coding, billing, and other financial aspects of healthcare. However, this is not limited to handling your A/R perfectly. But, you also need to train them so they can simplify the AR management by staying up with the advanced technology and the latest ever-evolving medical billing/coding guidelines.
Accurate Data Collection
To ensure that the claim process is running smoothly you have to collect accurate and updated information from your patients. You would witness fewer disruptions in your billing operations and receive payments on time when you use automated data collection or processing. This accuracy will also enable you to reduce the number of your A/R days. It is necessary to check if a person is authorized/eligible to access the information aside from the accurate documentation. Management, security, and data collections must be organized for increasing productivity, proficiency, and generating revenue.
Strategize Managing & Reducing Claims
The main reason for declining revenue in the lab practices across the United States has been rejected claims due to the minor error from the end of staff who is managing it. This results in clogging up of the accounts receivable when not resolving or addressing the denials adequately. Implementing comprehensive lab billing solutions and strategizing promptly will help you figure out the reasons behind these rejections. Thereby, this will reduce A/R days, help you track the claims, and get you paid fastly.
Send Claims On Time
When a practitioner is done by providing required services to patients, and consumers leave the practice, the front-end team must send accurate data to backend staff. So, they can prepare claims or send them at the right time to the payers without having any delay. You must ensure there are no delays due to miscommunications and assure that the billing specifications are correct and all the regulations rules are followed accordingly. The more delays in your reimbursements will happen the longer it will take to send these claims to the payers. You can automate the manual processing to avoid such delays. In this way, you will be less prone to billing/coding errors and this will also help you get the complete payments for the rendered services efficiently.
Outsource A/R Management Services
Many lab practices are tending to outsource their lab billing services to professional firms due to the high significance of A/R as a part of the healthcare financial process. Laboratory Billings is a reliable and credible lab revenue cycle management agency in the US. Our policy experts and A/R analysts provide you end-to-end support and help you adopt specialized billing solutions to reduce cash flow disruptions and streamline the billing/coding operations. Our industry professionals put out aging reports to identify/resolve the reason why your revenue gets clogged? They will maximize your working capital, improve your business productivity, and enable faster cash conversion.
To get more information. Talk to our consultants today to see how we can identify defaulters and recover your payments faster!