Boost AR Productivity with These Best Practices

Managing finances can be challenging for a healthcare organization. The AR team follows a proactive accounts receivable strategy to boost AR productivity in healthcare. Basically, accounts receivable is the amount of money payers owe to the healthcare providers. Additionally, payment delays cause failed reimbursements. AR follow-ups ensure positive cash flow and sustainability of reimbursements in the medical organization. It further helps improve revenue cycle management and reduce outstanding balances. Let’s discuss how to make your accounts receivable management process productive.

Understanding AR Productivity in Healthcare

AR productivity is the coherence in collecting pending and overdue patient and insurance companies’ payments to achieve rightful reimbursements. A high AR productivity is achievable when the AR team makes the billed payment into collected revenue for the services rendered. Likewise, a low AR productivity shows errors in the claim submission process.

How to Maintain AR Productivity in Healthcare?

There are multiple ways to maintain AR productivity in healthcare for an optimal revenue cycle. Let’s discuss one by one.

1. Insurance Eligibility

The first phase is to verify the patient’s insurance eligibility. If there’s even the slightest incorrect or missed information is present, the payer will deny the claim. Therefore, accurate patient information is vital to get complete payments.

2. Financial communication with Patients

Helping patients understand their financial responsibility is essential to improve the RCM process. Similarly, openly conversing with patients regarding their economic condition helps optimize the RCM cycle. Give a detailed document to the new patients so they know about the expected overall cost of the treatment.

3. Correct Medical Coding

It is vital to use accurate CPT codes to improve AR productivity in healthcare. The billing errors that occur due to inaccurate coding result in payment delays. Therefore, you should use appropriate medical codes. Also, physicians can outsource medical billing and coding services.

4. Accounts Receivable in Medical Billing

Efficient accounts receivable in medical billing ensure the provider receives the patients’ payment for the services rendered. This helps recover the rejected claims, seamlessly transferring money to the provider’s account.

5. Claim Denials and Appeals

Once the claim is denied, the AR team sends an appeal for claims review. Furthermore, continuous monitoring of claim denials and appeals is necessary for a smooth workflow. It helps enhance the RCM process and restrict denials.

6. AR Reports Consistency

The failed reimbursement causes significant loss to providers. The AR reports also help streamline the process of recovering payments. It identifies, investigates, negotiates, and monitors the overall financial progress. Hence, be consistent when it comes to AR reports.

7. Reduce AR Days

Reducing accounts receivable days helps boost AR productivity in healthcare. Check the aged account and identify the root cause of their payment delays. Try to resolve the issue as soon as possible. Delayed AR cycles drastically impact the revenue cycle, thus causing financial instability.

8. Workflow Automation

Automate the workflow by using authentic and error-free software. It is possible with the implementation of secure software and tools. Further, it helps reduce denials and streamline the AR recovery process.

9. Outsourcing Medical Billing Services

Professional medical billing companies have dedicated AR teams that help achieve outstanding payments. In addition, AR experts follow the best practices to reduce the days of claims in AR. So, outsourcing medical billing can help healthcare practices improve the productivity of the accounts receivable process.

Conclusion

To boost AR productivity in healthcare, check insurance eligibility, communicate with patients regarding their financial health, and conduct the proper medical coding. Furthermore, be consistent with AR reports and audits and continuously monitor the workflow for better results. So, strategic thinking and careful implementation help reduce AR days, ultimately boosting revenue.