How to Fix Accounts Receivable for Healthcare
In the healthcare industry, accounts receivable can prove to be problematic. Practices and medical organizations are trying to find ways to manage them more effectively. There are several problems that providers must overcome. These include:
- Insurance claim denial. Reviewing all claims before submission is essential to ensure that denials don’t occur. Any denied claims must be thoroughly investigated.
- Unnecessary write-offs. Too many healthcare organizations write off payments rather than chase after nonpaying patients. However, offering payment plans may be a better alternative to fixing accounts receivable. Patients may be willing to pay but need some assistance to help them reduce their debt.
- Bad debts. Bad debts are increasing among healthcare providers. Patients are now responsible for paying more of their care costs. This means they contribute more than 25 percent of the medical industry’s revenue. Therefore, it is essential to find ways to collect patient payments. It is important to gather all insurance and billing information before treating patients. Also, ensuring patients are aware of their payment responsibilities upfront will help.
- Collection culture. Healthcare organizations must put in place a culture of payment collection. Teams must also have the correct tools at their fingertips to collect payments on time.
- Proper ARM procedures. If you have poor accounts receivable management procedures in place, your bad debts will increase. Reconciling bank statements and verifying all transactions for accuracy help to guard against errors and fraud.
- Offering more payment methods. Patients need more flexibility these days in payment methods. They want to be able to pay via a method and at a time to suit their needs. Online payment portals and IVR systems are key elements of this.