3 Powerful Tips to Improve Hospital Accounts Receivable Billing

We all know the fact that the healthcare domain is a complex one because of ever-changing federal regulations and you need an efficient hospital accounts receivable billing mechanism to ensure a healthy financial state for your practice. Just like other mid and small-scaled hospitals, delayed, underpaid and denied claims are the common reasons behind poor hospital accounts receivable billing infrastructure for you as well. However, you can still manage your AR well by having a clear understanding about “days in AR”. 

What is days in Accounts Receivable (AR)?

In simple terms, AR or Accounts Receivable days mean the number of days it takes for your hospital to get paid by patients and their insurance companies. In an ideal situation, you should be able to submit a claim within 72 hours after the provided services, diagnoses and procedures performed in your hospital and you can expect to receive the payment within 14 working days. Always remember that if you are a late collection, it would automatically increase your days in Accounts Receivable. You can calculate AR days by using this calculation: Total accounts receivable amount/ your average daily charge. American Academy of Family Physicians recommends that your ideal Accounts Receivable days should stay below 50 days but you must aim to keep it below 30 days to maintain a perfect management of hospital accounts receivable billing. 

Fortunately, you can reduce your AR days and streamline a perfect hospital accounts receivable billing infrastructure by following the tips mentioned below- 

Perfect tips to manage hospital accounts receivable billing- 

1. Knowing your patient’s current insurance details helps you understand what their coverage is and how much they need to pay. Insurance verification specialists collect and check important information like the patient's insurance, personal details, and contact information. You should update patient records before their appointment so the insurance verification specialist can check their insurance coverage with the payer.A patient’s insurance-eligibility verification also enables you to know if they have any amount due from the last visit so that you can collect that amount.
2. You must inform your patients about their insurance benefits and possible out-of-pocket payments for them. The best way to do this is by creating a simple policy that clearly explains your payment expectations. To improve your accounts receivable days, make sure to collect all copayments, prepayments, and any outstanding payments when the service is provided. After the appointment, follow up with your patients by sending statements that include due dates, payment methods, and contact info for any billing questions. Offer multiple payment options to make it easier for them. Regularly check patient aging reports and reach out to those with outstanding balances. Create strategies for both timely payers and those with larger amounts due.
3. It is always important for you monitor and manage pending payments from your patients’ insurance companies to maintain a healthy financial foundation for your hospital. MGMA suggests analyzing collections by payer to see which insurance companies are slow to pay and which ones have more denials. This can help you take action and improve your cash flow. 

Efficient AR management comes down to having the right people and processes. When you partner with an experienced hospital accounts receivable billing company, their experts handle everything for you. With solid procedures and checks in place, they help you collect overdue payments and prevent AR from piling up.