Accounts Receivable Management (AR) is a broadly used term, which states the amount the customer’s owed cash to a company. Like healthcare, in the business, accounts Receivable management means the patient’s balance on their Account is due to be paid within a year.
Account receivable services cover the administration of various reports relating to insurance collection analysis, write-offs, collection analysis and reviews of bad debts, and ratio analysis. Except that, you will get to study the insurance contract to ensure that health care providers are compensated appropriately.
Account Receivable Analysis
An account receivables summary is a crucial element in accounts Receivable management analysis. This AR summary will allow you to determine. Who owes you money and how much each client has to pay, and who is over the due date. In addition, the Accounts Receivable management summary will help you assess your receivables in a variety of ways, such as by patient and insurance plans and by class of payer.
Your billing personnel should conduct an insurance eligibility check before the event to prevent the patient’s responsibility from entering into accounts Receivable management totals. In observing the AR summary, the payer’s class should be reviewed and checked whether designs of accounts Receivable management totals by time categories (30 60, 60, 90 120 days, etc.) are suitable for the class in question.
Determine the amount of Account Receivable?
Let’s take a look at an example that can further clarify the concept:
Consider a scenario where a clinic costs $3,898,500 per annum that is $324,875 per calendar month, which is $10,680.82 each day.
To determine “the “Days in AR,” the following method is working. The formula is:
days in AR = total AR Average daily cost
Average Daily Charge = USD 10,681.
Total AR = USD 916,752.
Days in AR = USD 916,752/ USD 10,681 =86 days (85.83)
The 86-day timeframe appears excessive because of a mix of payers or the circumstances of a major payor. When your business is predominantly Medicaid, it does not pay less than 90 days. Therefore, you can count 86 days as considered appropriate for days in AR.
How to Reduce AR? With Receivable Collection Services
Providers must collect the fees during the visit to decrease Accounts Receivable management. However, patients who have an undetermined co-payment (e.g 30 percent of the Medstar billing allowed amount owed by patients who do not have secondary insurance) may be paid at the moment of service.
The employee should be able to access a Medstar billing allowed payment schedule for patients who require the services they provide to patients in the office in addition to the recalculated 30- percent co-payment for the patient’s payment point. Furthermore, the staff should be aware of Medstar patients who do not have co-insurance. They must collect the co-payment before patients leave the clinic.
If the Account remains uncollected for an extended period, the business suffers more than the loss of revenue and has to reserve resources to collect. All this can be done with receivable collection services.
Strategies from the industry on reducing AR days
Training employees will cost a lot of time and money, but it can save lots of money for healthcare providers in the end. The healthcare personnel will take authority of adequately trained billing. They would commit billing and coding errors that result in unnecessary spendings. Additionally, Coding staff should complete an entire 60-hour training program with four-hour increments to code efficiently.
Automating your accounts Receivable Management Department
Technology’s fast progression has given businesses technology to improve dispensation efficiency and cut prices while increasing competence and productivity across the whole enterprise. Medical Data Entry software will help you simplify your collection process by tracking multiple items simultaneously like past-due invoices, identifying patients who are behind, and automating late fee collection.
Manual AR processing is expensive and inefficient, but automated AR can help simplify business processes, allowing AR personnel and AR team to increase cash flow, cut operating expenses, and improve customer service.
How do you use AR?
AR reports will be used to collect balance due to both insurance providers and patients. Therefore, the information in your AR report should be classified according to the payer (patient ratio as opposed to. balance of insurance) and age (e.g., proportions of patients that are older than 90 days) and the amount of compensation (e.g., within a specific category include accounts in descending order of the balance due).
Beginning of AR Collection
Your employees must begin working from the most significant accounts before calling AR to collect the balance from patients. Also, establish the minimum threshold for the small balance write-off. There should be no missed account, regardless of the method you use for AR.
Mobilization of accounts receivable as well as the acquittal at Medstar Billing Services
Our Medstar Billing Services are a group of intelligent individuals with many years of experience in multi-specialty, multi-platform Medical billing, as well as coding, come up with a new strategy to collect your accounts receivables.
What we focus on
- Analyzing the claims about not being paid yet.
- Assessing and Correcting the patient’s balance
- Coding analysis for every claim processing in healthcare
- Solutions to the current problems
Transactions with us
- We need access to the current systems for managing your practice
- Your login credentials to your portal for insurance.
- Update on client details
- Billing owner/manager for the weekly call
- You can collect all outstanding claims
- The payment is based on the amount collected
Why Choose Us
AR report will assist you to ensure report and collect that charges accurately. In addition, it will help you understand what hasn’t occurred and contains lots of helpful information when utilized correctly. Additionally, the management aspect of AR collection can help you identify the issues in your receivable’s administration process.
AR collection Agency
Medstar Billing Services has been contributing account receivables to clients across the USA. Our experienced team of AR professionals has been working with various insurers and is familiar with their policies. If you have many account receivables and payments which you need would be collected, connect to us at AR collection agency Team.
Contact us now!
Phone (407)337-5901
Email: info@medstarbillingservices.com