Accounts receivable management in the health care environment is similar to handling an evolving organism. Several transactions are conducted in medical practices throughout the day. Each has a bearing on increasing or decreasing the distance to the finish line.
Role of Accounts Receivable Management in Medical Practices
Comprising several vital stages such as patient eligibility verification and patient engagement, the account receivable management process is crucial to maintaining the financial health of a medical practice. With as high as 25% of the work performed by medical practices going unpaid, there’s little wonder accounts receivable receives great focus in the modern medical industry.
Steps to Manage Medical practice Accounts Receivable Effectively
- Dispose of old data
- In addition to collecting complete patient information, front desk staff must be trained to validate all information. Having completed the data collection process fully, those data that need not be retained must be identified and purged.
- Collect Outstanding Balances
- Care must be taken to collect from recurring patients. Outstanding amounts, when let off without collection, tend to grow with subsequent patient visits.
- Collection trend list must be created
- Collection performance must be analyzed. Analytics provided in practice management system helps identify weak areas in the revenue cycle. Weekly analysis of details related to collections will describe payer tendencies having issues.
Constantly changing rules and complicated payer processes cause difficulty to physicians in collecting the full amount toward the services they have provided to patients. By following the said steps, it is possible for practices to manage their accounts receivable in proper manner.
By maintaining accurate and updated patient information and establishing a concise process of credit approval, you stand to manage your practice accounts receivable better. Moreover, having an effective billing process and optimizing the collection process enables practices to achieve financial well-being.
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