Looking for Solutions to Common Medical Receivables Challenges?
If your healthcare organization struggles from poor cash flow, it’s probably because of poor medical receivables management. While this isn’t unusual within the sector, it’s a problem that you need to resolve.
Denied Insurance Claims
A primary problem faced by medical ARM teams is the denial of insurance claims. Healthcare organizations lose at least 10 percent of their potential profit if they lack a suitable process for managing denials. To resolve this, medical accounts receivable teams must review all claims before submission. They must check that each one meets the appropriate guidelines. This will ensure minimal denials. Any denied claims must be fully investigated and followed up.
A startling number of healthcare organizations end up writing off a surprising amount of debt. This is often unnecessary. Even if the amounts written off are small, they soon mount up. The result is a severe impact on the practice’s balance sheet. Medical receivables teams must review all written-off debts thoroughly. It’s always worth pursuing patients to persuade them to pay in installments. This will help to keep cash flowing and minimize write-offs.
Avoiding Bad Debts
A rising amount of bad debts is a major issue in medical ARM. Patients are now having to take more responsibility for their treatment payments. Insurance companies can no longer be relied upon to keep cash flowing. Therefore, collecting patient payments should be a focus. Front desk staff members must ensure that they have gathered all key insurance and billing information upfront. They must take credit card details in advance. They must also inform patients ahead of time about their expected costs. This will help them to better understand their payment responsibilities.
Culture of Collection
Healthcare professionals don’t specialize in collecting patient payments. After all, the focus of their work should be to provide high-quality patient services. However, they must also make sure they get paid for providing those services. Therefore, it is important to introduce the right culture of payment collection to the practice. A culture of effective payment collection must be in place. Practices must also have the right tools in place for payment collection. This will ensure a positive patient experience that will also benefit the practice.
Preventing Errors and Fraud
If a practice has poor ARM, it can end up being the victim of fraud and bad debts. Therefore, it is important to reconcile bank statements to guarantee every transaction is a valid one. This helps to guard against both errors and fraud. As a result, practices can focus more fully on the patient.
Offering More Payment Modes
If your practice offers only a single payment option, it will suffer. Patients today want options to make a range of payments. Cash and paper checks are no longer relevant. When practices rely on those old-school options, they struggle to collect payments. Healthcare organizations must consider adopting numerous payment options. By allowing patients to pay online or by telephone, the chances of receiving payments increase exponentially. When they can use their preferred debit or credit cards or ACH payments, cash flow increases. The more flexibility patients can enjoy, the more loyal they will remain to the practice. The more freedom they have in how and when to pay, the more revenue practices receive. This has been tried and tested and proven to be a fact.
All members of the healthcare organization must be passionate when it comes to their jobs. This also stretches to the staff members who are collecting patient payments. Without the drive to succeed, practices suffer in the long run. Cash flow dries up and patient experience suffers. If staff members fail to take the goals of the practice seriously, it will suffer from a negative impact. Making the jobs of front desk staff members easier can help to keep them motivated. Finding the right online billing tools and the most streamlined payment solutions will do that. Not only will the practice save costs, but it will also save staff time.
BillingTree is a payment processing company with years of experience in the healthcare industry. We know that it’s difficult to manage all the complex elements of healthcare billing. This is especially so in today’s challenging medical environment. However, we offer a range of healthcare-focused payment and billing solutions that can alleviate the problems. We designed our CareView solutions to meet the needs of a wide range of healthcare organizations. With online billing and web portals for patient payments, BillingTree makes it easier to keep cash flowing. With BillingTree’s help, it’s possible to improve the patient experience and keep patients loyal. At the same time, it helps to keep the practice thriving and successful through improved medical receivables collection. With streamlined healthcare billing and payment processing in place, medical organizations can see a huge improvement in cash flow.