How a Hospital’s Revenue can Suffer due to Lack of AR Management?

It is essential to correctly monitor the AR management at a hospital or clinic because it ensures that the patient’s will and comfort are not affected and duties collected.

While this seems straightforward, many providers are doing a terrible job, and over 55% of non-insured patients get a charge that they really cannot afford to pay.

Here we look at some of the elements leading to a dismantling of poor Hospital Billing, AR management, claims and how hospitals that choose to outsource the process can fix their account receivable. .

1- Insufficient AR Management Monitoring

Most healthcare providers are guilty of failing to keep track of and analyses account receivable. Employees must have experience in AR management, knowledge of the claim adjudication procedure, and familiarity with terminologies, coding, and other factors to perform accurate analysis.

2- Inability to Track Claims Status Quickly

Tracking the status of claims and monitoring any changes to laws is difficult for providers, but it is simple when utilizing a system developed for the purpose. Additionally, data mining and analysis and thorough reports need to be used to enhance the handling of accounts receivable, and access to these can be obtained when you outsource AR management services to specialists.

3- Failure to Plan for Financial Responsibility

A massive per cent of providers fails to calculate financial responsibility for treatment or operations ahead of time. These providers lack the software and processes necessary to determine patient financial obligation until a claim is submitted and processed. Furthermore, because most providers focus on copayments rather than insurance eligibility verification, the billing staff must work hard to complete the accounts receivable process within 42 days.

4- No prepayment plans or loans available

Some providers may provide the option of paying for treatment in advance based on estimates. Prepayment plans and no-interest loans are most effective when they have developed ahead of time and presented to the patient together with pre-surgery details, resulting in fewer defaults and enhanced goodwill.

5- Using Outsourcing Partners who are unaware of Self-Pay Accounts

Partners familiar with setting up and managing self-pay accounts provide for improved AR management, and patients can pay small monthly amounts rather than more significant payments. This strategy relieves the patient’s stress during repayment and assures that they pay the total amount owed to the provider.

6- Late denial management

Any hospital or clinic should strive to resolve 37 per cent or more of their claims in the first instance. However, if this does not occur, denials should be treated as soon as possible because rejections handled within 48 hours result in around 80% of claims being resolved within 90 days.

How Right Medical Billing can help you with Hospital AR Management?

Keeping patients satisfied with their care in a hospital or clinic is a top objective to emphasize the value-based care system. We at Right Medical Billing are committed to effectively managing accounts receivable and guaranteeing patient satisfaction. The medical accounts receivable program offered by RMB overcomes the problems that delay the collection efforts by the individual providers. Our AR management Solutions are comprehensive while being entirely adaptable, allowing clients to select the entire bouquet of services or begin a new assignment with a subset of processes, business units, or locations. In addition, we make sure that our customers do not face any issues in receiving the payments for their services.

Contact us today at (281)-864-0448 for your consultation.

 

 

 

Written by: Kaynat Ishfaq
Author has been writing from last 4 years in Healthcare and medical billing field.

Other contributors:

Shahzad H
Revenue Cycle Management Consultant, Medical Billing & AR Audit, Free Standing Emergency Rooms, Micro Hospitals, Compliance, OON Negotiations, Digital Marketing

 

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medical billing, medical billing and coding, revenue cycle management, ar management, accounts receivable recovery, free-standing er billing, free-standing emergency room, out of network negotiations, prior authorizations

 

 

 

 

 

 

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