Reducing AR over 90 Days
Outstanding accounts receivable in healthcare are one of the most critical issues that the healthcare industry faces today. Organizations are often seeking the right answers to reduce their receivables for over 30 days and also the way to prevent them from happening in the first place. Accounts receivable (AR) over 90 days is a key industry benchmark to determine the health of your medical practice. As per healthcare data, AR over 90 days in the 15-20% range is average. If you have a high percentage of AR over 90 days, it’s clear you have a real medical billing problem on your hands.
Tips on Reducing AR over 90 Days
Focus on Front End
Focus on your front end by separating administrative work from the clinical setting. Once a patient is scheduled, a staff member is notified and can begin verifying insurance information and eligibility, requesting pre-authorization, if necessary, and estimating patient liability. Obtaining pre-authorization upfront prevents rejected claims and helps keep AR days under control. If your front-end staff does their work efficiently, you don’t have to worry about patient collections.
Collect at Time of Service
Insist that each patient submit their co-pay before leaving the office. This will decrease aged receivables and decrease bad debt. Require that your staff submit a report of co-pays collected so that you can identify delinquent payments quickly. Some practices are also adopting a ‘card on file policy’ that requires patients to keep an active credit card on file.
Focus on Claim Denials
Denied claims represent a major lost revenue opportunity. Denials represent the 10 percent to 20 percent of claims that cause most missed revenue opportunities. When denials are allowed to accumulate, opportunities for collection can be missed altogether, and AR days increase. It is important to analyze denials and learn whether there is a root cause that can be eliminated to cut down on denials. Receiving denials in one location rather than multiple points of entry helps with consistent data collection that can help get to the root of claim rejection causes. Plus, it allows better time tracking so fewer claims end up rejected for failing to meet submission deadlines.
Run AR Reports
Keep track of AR trends and fluctuations by running accounts receivable reports every month. These reports should include aged receivables so you can track progress with older bills. Usually, most of the claims will take an average of a month to be reimbursed. These AR reports will help you find potential issues from a high viewpoint and the follow-up report will offer you a close-up look at the cause of the issues.
Outstanding Accounts Follow-up
Patients with outstanding balances should be sent frequent notices. Medical offices often mail bills once a month, which impinges cash flow. Try mailing patient invoices once a week and insurance invoices twice a week. The quicker a bill arrives at the proper recipient, the sooner it can be paid. If they continue to neglect these reminders, have your office follow up by phone. Phone calls are more difficult to ignore than letters.
Reducing accounts receivable requires a systematic approach towards medical billing for your practice. Most of the providers are busy in patient care and can’t dedicate much time to improving medical billing and collections. We can assist you in reducing your accounts receivable and bringing AR over 90 days percentage to less than 10%. To know more about our accounts receivable management services, contact us at 888-552-1290/ info@e2eMedicalBilling.com