How to Improve Your Accounts Receivable and Revenue Cycle in Healthcare

Did you know that a significant portion of hospitals’ collected revenues are deposited as bad debts that they are unable to recover?

Improving your bad debt rate is crucial to improving your accounts receivable. This article will explain how to improve both this and your revenue cycle.

Ready to maximize your bottom line? Keep reading.

Pre-Bill Review

Prebill review is an important part of the revenue cycle in healthcare. It helps to ensure that bills are accurate and complete before they are sent to insurance companies. 

These can also help identify coding errors or documentation errors that could lead to reimbursement denials. And it can take several steps to improve prebill review and the overall revenue cycle in healthcare.

One approach is to invest in high-quality billing services, especially when it comes to urology medical billing. They can help to automate the process and reduce errors.

Another option is to educate employees on proper documentation and billing procedures. And mostly, it is vital to have a process in place for reviewing and resolving denials.

By taking these steps, you can help to improve your accounts receivable and ensure a smoother revenue cycle.

Early-Out Collections

If you are having difficulties with accounts receivable or your revenue cycle in healthcare, there are a few ways to improve things. One way is to enroll in early-out collections.

This is a program that helps you collect payments owed to you. They will work with you to set up an affordable payment plan for the patient and allow you to get paid in a timely manner. And these can be a big help to improve your overall healthcare management.

Self-Pay Follow-up

Healthcare has many ways to improve your accounts receivable and revenue cycle. But one way is to ensure you have a system in place for follow-up on self-pay accounts.

These may include setting up a payment plan with the patient, sending monthly statements, or even hiring a collections agency.

Whatever system you have in place, it is important to be consistent with it and make sure you are doing everything you can to collect on self-pay accounts.

Improved Communication 

In order to improve your accounts receivable and revenue cycle in healthcare, it is important to have improved communication between the biller and collector.

By doing this, you can avoid any misunderstandings and ensure that both parties are on the same page. Additionally, this can help to expedite the process and make it more efficient.

Make Use of Technology

Technology can help you improve your accounts receivable and revenue cycle in healthcare. By automating tasks and using data analytics, you can improve your collections rate and reduce write-offs.

You can also use technology to streamline your billing process and improve patient communication.

Establish a Thorough Billing and Coding Process

One way to improve your accounts receivable and revenue cycle in healthcare is to establish a thorough billing and coding process. This process should include:

Reviewing All Medical Records

To improve your accounts, you should review all medical records. It will help you determine which accounts are receivable and which ones are not.

By reviewing all medical records, you will also be able to identify any errors or omissions that may have occurred. Additionally, you will be able to determine if any adjustments need to do to the accounts.

Time Limit for Filing Claims

It is important to know the time limit for filing claims in healthcare. These will vary depending on the type of claim and the insurer, but it is generally between one and three years.

Once a claim is filed, the insurer has a certain amount of time to process it and make a decision. If the claim is probably denied, you will have to appeal the decision.

This process can be time-consuming, so it is important to be familiar with the deadlines and requirements.

Submitting Claims Electronically

When you submit your claims electronically, you are taking advantage of a procedure that can speed up the entire healthcare revenue cycle.

This will result in shorter payer turn-around times and getting your payments faster. In addition, you can better track the status of your claims and avoid delays or denials.

Following Up on Denied Claims

The revenue cycle in healthcare is a process that begins when a patient receives the care and ends when the provider is paid.

Accounts receivable is a critical part of this process, as it ensures that providers receive payment for the care they have provided.

One of the biggest challenges faced by accounts receivable departments are denied claims. It can be difficult to get the provider paid when a claim is not granted. However, there are a few things that you can do to improve your chances of getting paid:

• Follow up with the insurance company
• Appeal the decision
• Negotiate with them

By establishing and following a thorough billing and coding process, you can help ensure that your claims are processed accurately and timely, improving your accounts receivable and revenue cycle.

Understand Your Payer Contracts

Many payer contracts have a specific language you need to be aware of to get paid timely and correctly. There are also many different types of payer contracts, so you need to know which type you are dealing with in order to comply with the contract.

Once you understand your payer contracts, you can then take steps to ensure that you are getting paid correctly and promptly.

Implement a Patient Financial Responsibility Policy

By implementing a patient financial responsibility policy, you can ensure that patients are held accountable for their financial obligations and that they understand what their responsibility is.

This can help improve collections and reduce the overall bad debt. It can also help to enhance communication between you and your patients.

All About Improving Your Accounts Receivable and Revenue Cycle Today

Your healthcare business can improve its accounts receivable and revenue cycle by ensuring that you have a billing and coding system in place, that your staff is properly trained, and that you regularly monitor your receivables.

You can also outsource your billing and coding to a third-party company. By taking these steps, you can improve your accounts receivable and revenue cycle and improve your overall financial health.

So, what are you waiting for? Start following them today!

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