5 Solid Problems To Avoid In AR Follow Up
A successful AR follow-up process increases the healthcare organization’s cash flow tremendously. Are you facing serious problems within your medical accounts receivable management processes? Here are a few common problems to avoid in your AR follow up process.
1. Insurance Claim Denials
In the list of AR follow up problems, the insurance claim denial is the most easily predictable issues. A recent survey conducted by the Medical Group Management Association (MGMA), states that every healthcare organization should have a denial rate of 4%. So resolving these issues will reduce half of your AR follow up process burden.
So what’s the solution to overcome this? The only solution is that your team should carefully review every claim before submission so that it can meet the guidelines and try to keep a follow up of denied claims. And the other thing is, you should work on the denied claims and determine what needs to be submitted to make it successful.
RELATED: ALL ABOUT ACCOUNT RECEIVABLE(AR) IN HEALTHCARE
2. Write-offs Affect Your AR Follow-ups
You need to consider and work on write-offs, but it doesn’t mean all the write-offs are important. The AR follow-up team must understand it and review all accounts before considering them as a write-off. Receivables will significantly improve if each overdue account is evaluated properly. Some important steps to follow are assigning managerial approval for certain write-offs, tracking the patterns of write-offs, determining and taking control over your practice’s write-off rate.
Furthermore, before writing off unpaid accounts, audit everyone to guarantee that all payment options have been depleted. A concise review of every overdue patient account could bring about a successful improvement in receivables.
3. Lack Of AR Management
This is one of the serious issues and needs to be fixed earlier. A good team should be employed with advanced training in AR follow-up. Checking the bank accounts now and then will help providers identify any errors or fraudulent activities. Managing these minor problems will enhance cash flow. Medical billing outsourcing is an excellent choice to consider as Medical billing companies manage AR follow-ups efficiently.
4. Payment Options For Patients:
Some of the healthcare organizations use ‘only cash’ payment mode which affects the payment collections. So healthcare firms should provide various payment options like cash, credit card payment, etc to patients. It will help patients pay dues through their desired payment method.
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