Proper management of account receivables is critical for a practice’s revenue cycle. Underpayments and denials of claims are on the rise, with insurance companies’ ever-evolving rules for medical procedures. The result is that doctors and other healthcare providers such as pharmacists struggle to stay up to date with these complex rules and improve account receivable management to increase their bottom line.
Insurers can pay varying amounts for a particular procedure or treatment for a certain medical condition, depending on a patient’s medical insurance. This variation can make it tough to spot underpayment. In order to tackle underpayment, proper payment tracking is essential. This keeps tabs on whether contracts have been fully paid, at any point in time, and helps predict future collections.
Clear documentation and workflow management are essential to improving management of account receivables and mitigating issues that can go unnoticed. This necessitates proper tools for documentation and workflow management that support clear reporting and analysis, which drive improvements for greater efficiency and success.
Rigorous claim submission management is necessary to counter the problem of rising denials. Claims that do not get paid during the first cycle of submission delay the revenue cycle, and often fall by the wayside without proper follow-up. A pro-active approach that identifies claims that have a higher risk of being rejected is important. In addition, a process that seeks to continuously improve claim submissions by eliminating recurring errors, and adapting to changes and updates in rules and regulations will lower denial rates.
A clear follow-up process for claims will ensure that no claims are lost in limbo; with the right effort and updates, they can be pushed through for successful payment. This improves AR (Account Receivable) management and makes sure that no revenue is lost. Clear reports will provide actionable insights for AR management improvement on an ongoing basis, and this will slowly but surely reduce incidents of underpayment and lower denial rates.
Most healthcare providers are not skilled in AR management as their primary focus is providing quality healthcare and services to their patients. But poor AR management has a negative impact on revenue cycle which affects the health of the entire practice, and can even put its future at stake. Partnering with a skilled revenue cycle management firm is often the best choice for improving AR management while your practice focuses on mission-critical work and quality patient care.
If you are seeking options to improve your revenue cycle management, Allyhealth is at your service. With Allyhealth as your trusted ally in healthcare services, you can rest assured that your AR management and revenue cycle tasks are in skilled hands. Get in touch with us to find out more about our services.