Tips to Reduce Hospital Accounts Receivable
As an owner, hospital accounts receivable is an inevitable part of your business. However outstanding receivables can throw cash flow issues and financial strain for your hospital. Therefore, you need to understand hospital accounts receivable and take proper measures to reduce outstanding invoices.
What are hospital accounts receivable?
Hospital accounts receivable is the money your hospital is waiting to receive for the treatments and services it provides. It could be from patients or their insurance companies who need to pay up. Your hospital practice must put active efforts into collecting reimbursements for your hospital accounts receivable accounts.
The longer your AR remains delinquent, the less chance for you to receive payments.
You should consider accounts receivable as a crucial KPI (key Performance Indicator) for your revenue cycle management process. The list of individuals who owe you money can be both patients and insurance providers.
The moment you bill your patients or their insurance companies, your hospital accounts receivable cycle initiates.
The hospital accounts receivable management includes various activities like checking if patients have insurance coverage, sending correct and timely claims, and chasing up on claims that haven’t been paid or were denied.
Effective tips to reduce hospital accounts receivable:
At a hospital, various specialties are managed. Handling pending accounts receivable within such high in-patient volumes is quite a challenge. Having streamlined accounts receivable management in such a situation could be very beneficial.
1) Establish transparent payment terms:
The first step for you should be establishing clear payment terms. You should let your patients know about your payment expectations prior to the due date. It is always better to have payment policies that your patients can easily understand and follow.
2) Leverage electronic invoices:
In today’s digital world, sending electronic invoices to patients is simpler. Along with saving your time, it also owers the chance of mistakes compared to manual billing. Electronic invoices also let providers track unpaid bills and send automatic reminders to patients who haven’t paid yet.
3) Offer multiple payment options:
Your hospital should give patients different ways to pay their bills easily. They can choose from options like credit cards, online portals, bank transfers, and automatic deductions.
4) Implement an efficient AR process:
A smooth AR process is important for handling outstanding accounts receivable. Medical providers need a clear system for managing payments. This includes sending claims quickly, following up on unpaid claims, and keeping patients informed about their remaining payments.
5) Train your staff:
The team handling accounts receivable needs proper training. They should be able to explain payment rules to patients and keep track of unpaid bills. They also need to reach out to patients who haven’t paid yet. Moreover, they should be skilled in using electronic invoicing or billing software to ensure everything goes smoothly.
Read More:
How to Avoid Hospital Accounts Receivable & Payment-related Issues
Discover how to tackle hospital accounts receivable challenges head-on. Learn more about proven solutions to improve collections and ensure financial stability today!
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