Accelerate Cash Flow and Reduce AR Days
Healthcare providers know that cash flow is essential to a healthy medical practice and the organization’s financial well-being. Unfortunately, with so much pressure on providers to do more with less, most do not have the staff or resources to effectively manage and maximize their accounts receivable. In an ever-changing healthcare environment, providers are faced with the reality of shrinking margins due to:
- Rising out-of-pocket expenses
- Patient outcomes tied to reimbursements
- Increased patient deductibles and co-pays, affecting the patient’s ability to pay
- Lack of resources to effectively manage accounts properly
For example, claims are often left unpaid or underpaid by health plans because of errors in filing the claim, but many providers do not have the time, system, technology or expertise to pursue the money they are leaving on the table.
To increase cash flow, many providers are turning to outsourcing their medical billing and accounts receivable. But how do you choose the right revenue cycle partner to recover those revenues? Here are some tips for selecting the right service:
Though it might seem obvious at first glance, look for a company with a deep history in revenue cycle management, specifically in the healthcare arena. Look for an RCM partner that can manage the entire lifecycle of an account from the beginning of the patient journey at registration and pre-authorization all the way through collecting on outstanding patient bills and denied claims. Experienced RCM teams can spot existing inefficiencies and breakdowns in the accounts receivable process and institute best practices that accelerate cash flow.
Be sure your RCM partner can process claims and maximize close rates quickly to drive cash to your bottom line faster. Shortening collection times from 60-90 days to 30 days can make a dramatic difference to your revenues, and collecting just 5% more per claim can add up to tens of thousands of dollars over the course of a year.
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Choose a medical billing partner that uses technology to do things better, faster and cheaper than you can do on your own. For instance, using advanced technology such as robotics and artificial intelligence to search denied claims reduces the amount of time humans are needed to work the accounts. Eliminating manual steps means information can be gathered quicker, cheaper and more efficiently, resulting in shorter collection times and more money going to the practice sooner.
How your RCM partner interacts with your patients is critical. Make sure they take a patient-centered, compassionate approach to working with patients to collect on monies owed. Your RCM partner is your representative, and the quality of their patient engagement makes a dramatic difference to your patient and your reputation.
Patients who struggle to pay their medical bills are not spending frivolously on something they bought but could not afford. They are dealing with necessary and potentially life-saving medical services. A compassionate approach matters greatly.
A strong revenue cycle process with the right ingredients allows healthcare providers to deliver the best care without shifting their time and attention to administrative areas. With its comprehensive suite of revenue cycle solutions and nearly 300 years of collective expertise in the healthcare RCM environment, Meduit employs a caring, patient-centered approach to managing receivables and accelerating cash flow to maximize provider revenue.
For more information on Meduit’s RCM solutions, visit: MeduitRCM.com.