Doctors must prioritize high-quality patient care while also ensuring accurate reimbursements to maintain the operational efficiency of their practice.
With the evolving healthcare landscape and frequent changes in billing and coding regulations, it becomes challenging for providers to balance clinical and administrative responsibilities. This is where the hospital accounts receivable bucket comes into play.
The larger the aging bucket, the more of your revenue becomes trapped within the process. Often, these amounts are never paid, resulting in a significant gap between the services provided and the reimbursements received.
To mitigate the risks associated with increasing accounts receivable (AR), many practices are choosing to outsource their hospital accounts receivable services because of the numerous benefits it offers.
Before exploring the benefits that outsourcing can bring to your practice, let’s first gain insight into accounts receivable.
What Are Hospital Accounts Receivable?
In simple terms, hospital accounts receivable refers to the money owed to you by patients and insurers for the services and procedures you have provided and billed.
In healthcare revenue cycle management (RCM), accounts receivable (AR) is typically categorized by age, often using 30-day intervals.
- 1 to 30 days
- 31 to 60 days
- 61 to 90 days
- 91 to 120 days
What is Hospital Accounts Receivable Outsourcing?
The process involves partnering with a third-party specialty firm to manage some or all of your hospital accounts receivable tasks. This includes invoicing, payment processing, client credit checks, collections, and more.
Leveraging an expert team frees up valuable internal resources within your practice; allowing your staff to concentrate on patient care and health outcomes.
The Hidden Benefits of Outsourcing Hospital Accounts Receivable
It is completely understandable to question whether outsourcing your accounts receivable (AR) services is necessary. You may believe that managing the financial aspects of your practice in-house allows for greater control over the revenue cycle.
However, onboarding an experienced partner can revolutionize your practice by freeing up accounts receivable and transforming your practice's performance in the following ways:
1) Access to Expertise:
Imagine having a dedicated team of accounts receivable management experts, focused on maximizing your collections. Outsourced revenue cycle management companies employ staff who are well-versed in the latest AR trends and technologies, resulting in smoother operations and fewer errors.
2) Cost Savings:
While there are some initial expenses associated with outsourcing, the long-term benefits make it a more advantageous option compared to maintaining in-house staff. By outsourcing, you eliminate the need to hire, train, and retain employees, invest in new technology and infrastructure, and manage payroll and benefits.
3) Enhanced Cash Flow:
Accelerating reimbursements is a significant advantage of outsourcing. With the experience and expertise of outsourced professionals integrated into your (RCM) process, errors are minimized, leading to quicker turnaround times and improved cash flow for the practice.
4) Scalability and Flexibility:
The volume of patients in your facility may fluctuate over time. Outsourcing your hospital accounts receivable solutions can help you adapt to these changes. Your chosen partner can easily customize their services to meet your specific needs, resulting in greater cost savings for your practice.
5) Enhanced Customer Support:
In the ever-evolving landscape of healthcare, the shifting approaches to patient care and behavior necessitate effective customer support and improved accessibility to services. Experts in outsourced companies are well-versed in communicating with patients about billing in a friendly and approachable manner. Consequently, your practice becomes more accessible to patients, leading to increased patient satisfaction and an enhanced reputation.
To maximize the benefits of hiring a hospital accounts receivable (AR) company, you can follow these steps:
- Identify Your Needs
- Please seek client references and assess the company's presence in the market.
- Please provide a detailed plan.
- Costs of the Service
- Create a fair contract
Sunknowledge: Your Next-Door Hospital AR Solution
For over a decade, the company has maintained its competitive edge through consistent insurer training and client audits.
Sunknowledge Services Inc., a leading healthcare RCM organization, offers a wide range of scalable and cost-effective hospital accounts receivable solutions that cater to the needs of healthcare practices nationwide.
You can partner with the company to leverage the advantages of a cutting-edge, streamlined approach to processes, including insurance eligibility verification, prior authorization, accounts receivable management, collections, and payment posting.
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