Four Accounts Receivable Strategies that Guarantee Payment

Details and write-offs can spiral out of control. You might want the revenue cycle management services to revisit the accounts receivable strategy in such circumstances. Remember, an effective healthcare AR strategy leads to faster payment and better financial performance. Now, the question is how to initiate the program for seamless cash flow.

Let's not waste any time further and simply focus on top accounts receivable strategies that guarantee payment.

The significance of EFTs and ERAs

It's absolutely vital to include Electronic Funds Transfer (EFT) and Electronic Remittance Advice (ERA) enrollments for all payers. However, to initiate the process, the healthcare debt recovery services must identify paper payments and remittances received. The next step is to determine if EFT and ERA enrollments are available.

Running enrolment enables your firm to expedite the delivery of payments. You can make it easier to reduce posting errors. Most payers offer EFT and ERA enrollments; it's here that you can focus on ERAs to explore trending data of payments, underpayments, and denials.

Determine the cause behind denial trends

The second AR recovery strategy is to determine the root cause. For example, revenue cycle management services will identify payer trends and create action plans to prevent future related denials when working on an insurance claim.

There's equal importance to CAS codes. Basically, payers use the same CAS Codes nationwide; not all payers use CAS Codes in the same way. Also, there could be a discrepancy between how the CAS Codes get interpreted.

CAS Codes get interpreted differently; as a result, denials should not be worked solely by the definition of the CAS Code. Here, it's best to identify payer trends and begin determining the root cause of the denial.

Claim submission with no response

Claims submitted that don't receive a response are among the biggest challenges that healthcare debt collection agency come across. Most think that a response is just around the corner. However, that isn't always the case. Basically, no response at all is possibly the response.

Understanding how long an insurance company typically takes to accept and then process a claim or state insurance processing and payment laws can benefit the AR recovery strategy. In addition, knowing the respective state prompt pay statutes and allows you to utilize the statuses as leverage to reduce delays in claims processing.

Revenue cycle management services focus on various reporting techniques. It can be used to identify claims that have been submitted if no acknowledgment has been received from the payer's side. These reports are essential. They'll help you take action and resubmit with no additional aging of the claims or delay.

Healthcare debt recovery will identify why the initial claims were not received, or you could contribute to further delays in no responses.

Engage when necessary

The fourth significant strategy is to reach out to the patient when necessary. Here, patient outreach includes creating letters to your patients. This helps you in the claim resolution process.

The letter must cover the coordination of benefits, delays in payment processing by insurance, demographics, and why insurance is delaying or not processing the claims. Sharing the information helps your company build trust that you are doing your best to work with the insurance company to process it.

Final Wrap

When it comes to implementing revenue cycle management services, most healthcare organizations assume it must be done onsite. However, there are many features service providers include as a part of the "new normal." The recent need to transition to telehealth and consider patient monitoring has much-taken notice of how beneficial new features can be for seamless collection effort.

Patricia Hayden is a professional content writer and blogger from Atlanta, Georgia, USA. She is currently working with Vital Solutions Inc., a leading debt collection agency in the United States.