Minimizing AR over 90 Days

Introduction

Excessive accounts receivable (AR) exceeding 90 days pose a significant financial challenge for healthcare providers. Minimizing AR over 90 days is crucial to ensure healthy cash flow and long-term financial sustainability. This article explores technical and evidence-based strategies to reduce AR over 90 days, optimizing revenue cycle management (RCM) within your practice.

Strategies for Minimizing AR over 90 Days

On average, AR exceeding 90 days falls within the 15-20% range across the healthcare industry. Exceeding this benchmark indicates a potential medical billing issue requiring immediate attention.

Front-End Efficiency

• Dedicated Staff: Assign dedicated staff to verify insurance eligibility, obtain pre-authorization (when required), and estimate patient responsibility before scheduling appointments. This proactive approach reduces claim rejections and expedites the billing process.
• Card-on-File Policy: Implement a policy where patients keep an active credit card on file. This facilitates automatic payments, minimizing late or unpaid bills.

Claim Denial Management

• Denial Analysis: Regularly analyze denial trends to identify root causes and implement corrective actions. This may involve staff training, revising claim submission procedures, or contracting with a denial management vendor.
• Centralized Denials Processing: Establish a central location for receiving and managing denials. This ensures consistent data collection, facilitating root cause analysis and preventing future rejections. An efficient denial management system reduces AR over 90 days.
• Timely Claim Submission: Implement protocols to ensure claims are submitted within the designated timeframe to avoid denials due to late submission.

Financial Reporting

• Aged Receivables Reports: Generate monthly AR reports with detailed breakdowns of outstanding balances categorized by age. This data allows for proactive identification of aging accounts and prioritization of collection efforts.
• Enhanced Billing Frequency: Consider sending patient invoices weekly and insurance invoices twice weekly rather than monthly to accelerate the payment process.
• Multi-Channel Communication: Employ a multi-channel approach for patient communication, including mailed statements, email reminders, and phone calls. This increases the likelihood of prompt payment and facilitates early identification of potential issues.

Additional Considerations

• Technology Integration: Utilize technology solutions such as electronic health records (EHRs) and practice management software to automate administrative tasks, streamline workflows, and improve data accuracy.
• Patient Engagement: Foster open communication channels with patients to educate them about financial responsibility and provide flexible payment options.
• Outsourcing RCM: Consider outsourcing RCM functions to a specialized vendor with expertise in medical billing and collections. This can free up valuable staff time and resources, enabling providers to focus on patient care.

To summarize,

Implementing a comprehensive and data-driven approach to RCM is essential for minimizing AR over 90 days. By combining proactive front-end operations, efficient claim denial management, meticulous financial reporting, and effective patient communication, healthcare providers can optimize their revenue cycle and achieve long-term financial stability.

Struggling with AR over 90 Days?

Partner with PrimeCare, a reliable medical billing company with a proven track record of reducing accounts receivable for healthcare providers. Our team of experts will analyze your billing processes, identify areas for improvement, and implement effective strategies to optimize your revenue cycle. We’ll help you obtain pre-authorizations, manage denials, and collect outstanding balances, improving your cash flow and financial stability. Contact PrimeCare today to learn more and experience the peace of mind that comes with efficient AR management.