There are quite a few medical practices in the modern health care industry that search for ways to collect more of their accounts receivable. Being accountable for managing the accounts receivable in health care facilities, the administrating staff are often bewildered about how to manage their practice’s AR efficiently.
Lack of Benchmark to Measure AR Management Performance
Effective collection process gets affected by the lack of understanding by staff members about the accounts receivable management process. As they do not have relevant benchmarks, they are forced to rely on just the amounts and generalities without context. This leads to physicians and specialists who provide the medical services to get frustrated because of poor collection.
What’s So Significant about Medical AR?
It is through proper monitoring of the overall performance of accounts receivable on a regular basis that practices get to know their exact financial status. Moreover, keeping watch over accounts receivable helps get the warning signs early, so that corrective measures can be taken before the practice cash flow gets impacted greatly. What’s more, practices need to implement an efficient AR Management system even when their cash flow appears adequate presently – it is a vital element of the best practices in medical billing.
Measuring AR in the Medical Industry
Days in accounts receivable is the first measure in medical AR. It is the average number of days taken for collecting the payments that are due. This can be calculated by using certain metrics such as average daily charges and the total number of days.
Another method of measuring accounts receivable is calculating the aging buckets. Checking the outcome of these measures every month helps monitor the overall performance of the billing department of your practice. This is a clear indicator about how your practice is performing financially.
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Our services include AR follow-up, denial management, provider credentialing, payment posting, and charge entry. We help practices in unlocking the full potential of their medical billing and collection processes. Visit our website www.rapidcare.net for further details.