Account receivables follow-up
account receivables follow up is an important piece in the complex medical billing process. Effective accounts receivable follow up decides the financial stability and success of a practice. Efficiency and performance usually comes to the forefront when domain experts are combined with advance technology tools. An assertive follow-up with good claims resolution is the key to good revenue cycle management.
account receivable is defined as the total amount of money owed to a practice for the services rendered but not yet paid. As with almost any business, a medical practice should assess its economic health at least once a month. This is the single most important step in managing a practice's account receivables. If follow-up is done regularly and consistently, it will tell you whether a practice is growing or has become stagnant. An out of control account receivables can completely destroy even a successful practice. All practices render services based on the assumption they will get reimbursed for it. Also they assume they will get paid on time. Patients visiting the practice may have different insurance health coverage's and their claims adjudication process may be entirely different. Each insurance follow their own rules and regulations. If effective follow up is not made on time, receivables continue to go down and practices will end up with cash flow issues.
To manage accounts receivables effectively, it is very important to know your monthly charges, monthly receipts and total outstanding receivables. This will help you to derive at the AR days and different collection ratios. Aging of AR will be able to provide you the big picture on how effectively you process is working for you. It is vital to understand different insurance companies allowed amounts and claim processing times. Some insurance have quick processing times and liberal claims filing deadlines but whereas some have long claims processing times and quick claim filing deadlines. Understanding them in detail and effectively setting up a workflow accordingly determines the efficiency of the practice.
account receivables follow up includes both insurance and patient follow-up. It is not only sufficient to get money from health plans but it is also equally important to get paid from patients. Usually patients have liabilities to pay their co-pays, deductibles, out of pocket expenses, non-covered services etc. So it is absolutely necessary for the practice to collect up front co-pays and also balance bill for liable amount after health insurance reimbursements.
An effective account receivables follow up ensures financial success of a practice and it is absolutely necessary for trained professionals to handle it with great efficiency.