Medical accounts receivable is a crucial component of the overall financial health of the medical practice. Accurate and efficient management of AR can ensure that your practice can collect payments from patients on time.
To correctly manage medical AR, it is essential to understand the basics of how medical billing works. Patients receiving care at a doctor’s office or hospital are charged for the services provided. The charge is then sent to either an insurance company or the patient. Once the claim has been processed, a payment is made according to the terms of the patient’s coverage.
What is Medical Accounts Receivables? What Does It Include?
The amount that the insurance company or patient pays can differ drastically from what was initially charged by the provider. This difference is called a “write-off” and represents an amount of money owed to the provider that must be collected later. This money is recorded as an AR balance and must be tracked to ensure that it is collected in full.
Medical AR can also include payments from third-party organizations and patients who are paying out of pocket. Medical account receivables services ensure an accurate record of all payments and balances and stay on top of patient coverage and billing status changes.
How To Leverage Medical Accounts Receivables Best Practices?
Setting up a thorough medical AR practice is in your business’ best interests. It helps clear pending arrears and maintaining a steady cash flow in the business. Follow the steps given below to get started:
- Set Up a Consistent Billing Cycle: Creating a consistent billing cycle will help you keep up with customer payments and ensure that bills are sent out on time. Set up payment reminders to send to customers at the beginning, middle, and end of the month, so they have plenty of time to make their payments.
- Make Sure Invoices Are Accurate: Sending customers inaccurate invoices can lead to confusion and payment delays. Double-check your invoices before sending them out to make sure they’re accurate.
- Offer Multiple Payment Options: Offering customers different payment methods can help you get paid faster and reduce cash flow problems. Make sure you are offering options like credit cards, online payments, and other digital methods to make it easy for customers.
- Invest in Accounts Receivable Software: Streamline the accounts receivable process by investing in software that automatically tracks customer payments, sends out invoices, and generates reports for review. Automated systems can help you keep track of invoices, their due dates, and amounts received quickly and efficiently. They also make it easier for customers to pay electronically.
- Follow Up with Late Payments: If a customer is late on a payment, follow up with them as soon as possible to find out when they plan on making a payment. Revenue cycle management services encompass the entire revenue cycle, from pre-authorization to reimbursement. From providing expertise in managing billing and coding processes, internal controls, data analysis, payer contracts, and more. Additionally, it offers patient engagement solutions that enable providers to respond quickly to patient inquiries and requests.
- Keep Trained Employees on Staff: Having trained staff members who understand the medical accounts receivable process can help improve accuracy and ensure customers are billed correctly. Training staff on the proper procedures and techniques can also help prevent mistakes, saving your business time and money.
By setting up a consistent billing cycle and ensuring invoices are accurate, businesses can ensure that customer payments are made on time and that profits are maximized. Additionally, setting up reminders for customers will help ensure payment deadlines are met with no issues. Setting realistic expectations when managing Accounts Receivables is key to ensuring timely payments and success. With the proper management of Medical Accounts Receivables, businesses can remain profitable, and cash flow won’t suffer in the long run.