The healthcare sector has been hit hard by the global coronavirus pandemic. Now as the world has started recovering from the pandemic, many healthcare providers are finding it difficult to bounce back and improve the cash flow and collection at their medical practices.
According to Trends in Healthcare Payments – Annual Report, the average medical practice writes off over $30,000 in unpaid medical bills each year. 28% of the practitioners have no idea how much they are or should be writing off. As healthcare reimbursement evolves, healthcare providers must adapt and start focusing on increasing payments and decreasing A/R time in order to increase cash flow and collection at their practice.
Increase cash flow and collection at your medical practice by implementing these four simple steps.
- Follow efficient insurance verification process
- Send pending invoices at regular time intervals
- Offer multiple payment options
- Outsource your revenue cycle management process to a trusted partner
1. Follow efficient insurance verification process prior to offering service
The first step in this process is to ensure that each patient has valid, active insurance coverage before they receive any care. A simple way to do this is through software tools integrated with your electronic health record (EHR) system that can do quick insurance checks.
2. Send pending invoice at regular time intervals
Sending a copy of the bill to the patient’s insurance company after each visit, will significantly shorten A/R over time. Additionally, asking patients to pay their bills as they leave can also increase revenue flow. The most common reason for not receiving payment from insurance companies is incorrect or lack of information from your office. By reducing the number of outstanding claims, you also reduce the amount of reimbursement they can deny and increase cash flow and collection in medical billing.
3. Offer multiple payment options
Offering multiple ways for your patients to pay is one of the easiest steps you can take to improve cash flow and collection. By offering credit card payments, checks, cash, etc., you broaden the options for your patients. Taking it one step further, sending electronic statements via email or text messages attached with these payment options or online payment links, makes payment simple and fast. Additionally, offering payment plans adds an extra layer of convenience by allowing patients to take control of their healthcare costs.
Offering payment assistance programs will also improve cash flow and collection within your medical practice. This option is quickly gaining popularity across all industries. Position yourself for success by providing information on your website about financial relief options.
5. Outsource your Revenue Cycle Management process to trusted partner
Outsourcing your Revenue Cycle Management (RCM) process is the best way to transition your medical billing processes in-house and improve cash flow and collection for your business. By partnering with a qualified RCM company to take care of all aspects of your A/R process, including accounts receivable and collections, you will be able to save money on labor costs while increasing customer satisfaction due to faster payments and reduced A/R time.
Taking some of these simple steps, can greatly reduce outstanding claims and collection issues, while quick improving cash flow. Efficient Revenue Cycle Management is key to successful revenue generation. With a qualified workforce, checkpoints at each stage of the claim processing, and regular audits, you can build an efficient and effective RCM process for your practice.
If you are interested in learning more about iPatientCare’s advanced RCM solutions, contact our experts today.