Are there consistent errors within your medical accounts receivable management processes that are restricting your organization’s cash flow? There are a few common problems that plague healthcare providers that can be avoided in a few simple steps.
Have you ever heard the expression, "If you have to ask you probably can't afford it?" That's a bit how the healthcare community feels about insurance claim denial rates. There is a significant lack of information about the industry average for denied claims. Insurers are hesitant to release data about how often claims or denied, or for what reasons, often stating the information is restricted.
With the expansion of Medicare has also come a rise in Medicare Advantage plan enrollment by American seniors. Older patients are attracted to these "replacement plans" due to savings on premiums and the convenience of one-stop shopping for coverage. However, misinformation and a lack of education on the details of these plans is causing headaches for enrollees and healthcare organization reimbursement departments alike.
Growing challenges, restrictions and mandates across the healthcare spectrum are driving more and more hospital and physician practice managers to consider healthcare business process outsourcing.
Claim denials can lead to significant cash flow loss for any medical organization, offsetting gains in your healthcare revenue cycle. Luckily, healthcare organizations can avoid the majority of denials by performing careful claims processing and error prevention tactics. Organizations that effectively implement these practices join the ranks of the most successfully-performing medical groups, which average a claims denial rate of just four percent, according to the Medical Group Management Association’s (MGMA) 2011 "Performance and Practices of Successful Medical Groups" report.
Has poor medical accounts receivable management resulted in a reduction of cash flow for your medical practice? For hospitals and providers, it is not uncommon for accounts receivables to be put on the back burner. However, getting paid for services rendered is crucial in maintaining a successful practice and fulfilling your mission. Here are some common accounts receivable problems that can decrease your revenue and tips on how to fix them: