Effective management of both AR and AP is important for the financial success of your medical practice. Errors in patient or insurance information can result in claim denials, creating unnecessary setbacks. Understanding why claims are denied can help you avoid the same mistakes in the future. As organizations uncover flaws in their AR methodologies, they’re also discovering they may not have the right resources in place. For example, they may have staff whose skill sets Statement of Comprehensive Income may not have kept up with the increasing complexity of the AR environment.

Financing Medical Providers – Factoring Services

• Partner with Epoch Financial We offer specialized healthcare AR services that help you reduce outstanding balances, improve collections, and simplify your revenue cycle.
• After you receive the payment for your rendered service against a claim, the account is no longer in A/R.
• Accounts receivableare typically considered a current asset, as they are expected to be collected within a year.
• Medical billing companies provide claim status updates for every claim submitted, giving you transparency into the recovery process.
• In today’s world of rising medical costs, shrinking reimbursements, and increased regulatory oversight, hospitals cannot afford inefficient financial management.
• Managing your medical practice’s AR involves several strategies, including collecting patient payments upfront, regularly monitoring AR, and automating the AR process.
• The activities involve filing appeals, following up with the insurance for the appeals, and the reason for denials.

Partner with Epoch Financial We offer specialized healthcare AR services that help you reduce outstanding balances, improve collections, and simplify your revenue cycle. By putting best practices into effect, healthcare accounts receivable in healthcare businesses can drastically cut down on AR days and increase revenue cycle efficiency. The secret is to expedite payment collection and aggressively avoid denials. According to beckershospitalreview.com healthcare compliance breaches cost $6.2B annually. The average cost of a single data breach across all industries is $4 million, according to a 2016 study from IBM and Ponemon Institute. Approximately 90 percent of hospitals have reported a breach in the past two years.

Bad debt

The system reviews administrative denials to look for patterns that conflict with payer contracts or state or federal regulation. “We also aggressively utilize technology that helps us assure touches first-time quality, promotes standardization and electronically corrects AR issues.” AR collections should focus on the largest outstanding accounts balance sheet first, categorize balances by payer and age, and determine thresholds for small balance write-offs to ensure efficient recovery. Manual AR processing can be inefficient and costly, but automated AR can be helpful to streamline business processes, enabling the AR team to improve cash flow, reduce operating costs, and enhance customer service.

revenue cycle process gaps?

When AR balances age beyond 90 or 120 days, the likelihood of collection decreases significantly. Besides profitability, hospitals should assess liquidity ratios, debt-to-equity ratios, return on assets, cost per bed, and patient revenue growth. Non-financial indicators like patient satisfaction and staff turnover also influence long-term financial success. Break-even analysis helps hospitals determine the minimum patient volume or revenue needed to cover operating costs. This metric assists in pricing strategy, capacity planning, and evaluating the feasibility of new departments or services.

Automation frees up space devoted to physical record storage to improve environments for both patients and staff. The amount of paperwork required in healthcare operations is immense, but going paperless via AR automation saves time, supply expenses (e.g. paper, toner, printers, etc.), and storage space. It also makes organizations more reliable and environmentally friendly, as patient data is stored and updated on the cloud. Pulling an AR aging report (or a report that breaks down the amount of debts and how long they’ve been outstanding) will clue you in on what accounts are delinquent and for how long. This can help you get ahead of any problems with habitual late-payers and gives you the opportunity to intercede with collections or discontinue providing services to avoid credit risks.