Accounts Receivable Management
Maximize Your Revenue
As a healthcare provider, managing your accounts receivable (AR) is crucial to maintaining financial stability. Effective AR management involves managing denials, conducting timely follow-ups, and ensuring patient follow-up. Our approach to accounts receivable management will help you maximize revenue and minimize financial losses.
Areas of Focus
Managing Denials
Managing denials is the first step in effective accounts receivable management. Denials can occur for several reasons, including incorrect billing codes, lack of documentation, or insufficient insurance coverage. To minimize denials, it’s essential to implement a denial management process that involves identifying the reasons for denials, appealing denied claims, and tracking the success rate of appeals. Our staff is highly skilled at analyzing the reason for claim rejection, correcting the claims and re-filing without delay. Also, we examine denial patterns and find proper solutions to eradicate future occurrence of denials.
Timely Follow-up
Timely follow-up is the key to successful accounts receivable management. Follow-up should begin immediately after a claim is submitted and continue until payment is received. Follow-up should include verifying claim status, checking for errors or omissions, and ensuring that all required documentation is submitted. It’s also essential to establish a clear follow-up timeline and prioritize claims based on their aging. Our team will keep track of all claims that have been filed. Additionally, we will execute an action plan immediately if the claims are not paid within the 30-day time limit. Our team will also ensure that there are no underpayments or overdue payments.
Patient Follow-up
Effective patient follow-up is essential for maximizing revenue and maintaining patient satisfaction. Patients should be informed of their financial responsibility and provided with clear and concise statements. Communication should be timely, courteous, and informative. It’s also essential to offer payment options and financial assistance programs to patients who are unable to pay their bills. If there is any outstanding balance, our team will follow-up with patients through phone calls or emails, so there are no delays. Good patient-provider relationship is the key to timely payments. We stress the importance of explaining to the patients their financial responsibilities before providing the care.
Periodical Audits & Reports
Periodic audits and reports are essential for keeping track of your accounts receivable. Audits should be conducted regularly to identify trends, areas of improvement, and potential revenue losses. Reports should be generated periodically to monitor key performance indicators, such as denial rates, aging AR, and collections. Our team will conduct audits frequently to identify areas for improvement, check for problems, and assess risks, and will submit reports on the audits conducted. These reports will include aging AR reports, outstanding payment reports, and more. They will ensure that there are no future claim denials, and payments are received on time.
Let’s Work Together
Whether you just need a nudge in the right direction or a full range of services to get your practice running smoothly, we’re here to help. Book your discovery call today!
FAQs
How can I get paid faster from patients and insurers?
To reduce AR days, start by streamlining your billing process; verify insurance before each visit, collect co-pays upfront, and submit clean claims electronically. Follow up on denials or unpaid claims quickly and use automated reminders for patient balances. Offer multiple payment options (online, mobile, in-office) and clearly communicate your financial policies and patients will pay faster. Regular reporting helps you identify trends and address delays before they impact cash flow.
What are the most common reasons for claim denials and how can I prevent them?
Common reasons for denials are incomplete patient information, incorrect coding, expired insurance coverage, or missed filing deadlines. To prevent these, ensure your front desk verifies insurance at every visit and your billing team uses up-to-date coding software and follows payer guidelines. With MHMC, we can perform regular training and audits to catch errors early. Using a claim scrubber tool before submission can greatly reduce denials by flagging issues ahead of time.
How do I track and manage my overdue accounts?
Use an AR management system or your practice management software’s reporting tools to track outstanding balances by age (30/60/90+ days). Prioritize high value or older accounts for follow up and segment patients vs payers for more targeted outreach. Set up clear escalation steps—send reminder letters, make phone calls or involve a collections agency when appropriate. Consistent tracking and follow up not only recovers more revenue but also improves your financial forecasting and planning.