Medical billing companies build and maintain their reputation in the revenue cycle management industry with proven success models and repeatable procedures. Account receivables with age greater than 30 days prove to be challenging to retrieve. Healthcare organizations with in-house billing teams often find it difficult to cope with the mounting pressure of the daily workflow management and regular communication with the debtors to realize the stuck cash flow. Experts believe that following professional methodologies and proven successful models can help healthcare organizations manage their financial health.

There is no better professional help that you will get other than leading medical billing companies who manage different kinds of health systems, their clients and have a wide range of knowledge on diverse insurance panels. Several health systems have outsourced their accounts receivable work to leading RCM companies to ensure that they are successfully managed. This article will take you through 5 essential tips that the medical billing companies follow to tackle aged AR in the RCM ecosystem.

Assessment of Debtor List

  • Every healthcare organization has a unique setup, and they handle their workflow in different manners. Before blindly following any advice, it is crucial to assess your debtor list.
  • Professionals from medical billing companies believe that managing the aged accounts receivables is a dynamic procedure. The strategies keep changing according to the current debtor list of the organization.
  • The first step towards managing aged AR well is knowing your organization’s debtor and claim build-up. Knowing all the critical internal processes of the organization is also significant to determine what the next steps should be.
  • It is best to have a clear understanding of who your debtors are and how you can approach them to ensure quicker and more efficient cash flow.
  • At the same time, it is also important to remember that treating your clients with due respect and clear communication should be on the top of your priority list. It would be best not to compromise client loyalty at any cost to retrieve any stuck revenue.

Robust Data Analysis

  • Leading medical billing companies follow a robust collection and analysis system of data when it comes to managing any aspect of revenue cycle management.
  • Collecting sufficient information on the Electronic Data Interchange (EDI) transactions and analyzing them in a single report can give the professionals of the in-house billing team meaningful insights on the status of the claims.
  • Some revenue cycle management companies also use Aged Trial Balance reports or Aged Receivables Report to determine their outstanding balance from particular debtors.
  • Getting all the information in a single frame, preferably in a single software window, could keep all the stakeholders in a loop and update the AR professionals on the status of the monthly moving blocks.
  • The goal of the AR management professional is to contain the number of days in outstanding AR within 60 to 90 days.

Preparing the Time Blocks

  • Maintaining the time blocks for the different claims is extremely important if you want to keep a tab on the updated data.
  • Usually, the professionals from medical billing companies divide account receivables into different blocks. They are 0 to 30 days, 30 to 60 days, 60 to 90 days, and beyond 90 days.
  • It is advisable to complete the collections within 60 to 90 days at the most to avoid any pile-up for the future.
  • Experts also believe that preparing for collections within 7 to 14 days of invoicing is crucial to ensure the revenue inflow in time. The billing team also needs to be ready for an appeal if a denial comes forth.
  • Medical billing companies with a proven record of managing aged AR have mentioned time and again that they have been able to recover thousands of dollars from these aged AR, which have significantly improved the financial health of the medical organizations.

Investing in Automation Technology

  • Automation technology provides multi-dimensional support to the overall medical billing systems in the organization.
  • From collecting and analyzing large amounts of crucial data to providing necessary reminders according to the timeline of the claims, automation software solutions make it more straightforward for the in-house teams.
  • They are also vital when it comes to appealing for any denied claims. These solutions keep track of the different Timely Filing Limits for separate insurance panels and remind you about their deadlines.
  • Not all healthcare systems are in their path of digital transformation as of yet. However, they can avail of the similar advantages if they outsource their AR handling work to the different medical billing companies who have the necessary infrastructure to manage it for them.
  • In many cases, the RCM companies provide customized software solutions to manage the different facets of the procedure. You can also check out their offerings and opt for them to manage the duties better.

Staying Updated on Latest Reforms

  • Medical billing rules and regulations keep on evolving with each passing year. It is crucial for any billing team to stay focused on these changes and implement them in their daily workflow.
  • When it comes to aged AR and claim denials, the rules could also be changing from the insurance payer’s end. It would help if you emphasized these changing regulations to make sure you are on the right track.
  • In-house billing teams are often understaffed and find it challenging to keep up with the new laws. Organizations can opt-in for staff training programs for their teams to help them stay on top of the laws.
  • If you pair up with leading medical billing companies to adopt their automation technology, they will guide you on how to use them so that you can get the best out of these software solutions.
  • Get in touch with an experienced revenue cycle management company to guide you through the latest rules and regulations. You can also opt-in for their comprehensive services if you want to improve your overall performance.

We hope this article helped you understand the best practices for managing aged accounts receivables from the top medical billing companies. For any other queries, please write to us in the comment section. Subscribe to our blog and follow us on LinkedIn, Twitter, Facebook, and Instagram to get more updates on healthcare finances and technology.