Why is the AR process critical to the success of healthcare companies? An accounts receivable process will always play an instrumental part in the success of any medical and healthcare business. AR is the amount owed to medical practices by the patient. From an operational point of view, AR processes in medical billing also need to be payer-specific for reimbursement purposes and patient-specific for different types of payments.
The entire process of managing account receivables after delivering the services to the patient requires careful planning. It involves tracking unpaid amounts, evaluation of different payment actions, and pertinent methods to secure the payment. Ideally, a medical claim should be submitted within three days of the services rendered to the patient.
As suggested earlier, the account receivable process in medical billing is critical to the survival of a healthcare provider because almost a quarter of the medical billing services are going unpaid according to the survey by the Medical Group Management Association. Another similar survey revealed that nearly 70 percent of the claims are never submitted in the first attempt. These figures underline the importance of a streamlined process.
To improve the AR process, Medical Group Management Association recommends the following strategies:
Analysis of Payer:
To streamline the process, healthcare companies should evaluate which companies are slow to pay the claims and which companies often deny medical claims.
Assessment of Collections:
A patient or their family should be educated about the payment process. Copayments, prepayments, and other payment claims should be easier for the patient to understand.
Corrections of Error:
A reputable healthcare collection would ensure that there are no errors when submitting the claim and errors are corrected quickly.
The software used by the company must ensure that notifications for payments are provided in an accurate and timely manner.
If you require more information regarding account receivable process in medical billing, please contact GeBBS Healthcare Solutions.
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