Reducing days in A/R is more than just a financial metric—it's a lifeline for your practice's cash flow. Those outstanding receivables aren't just numbers. They're potential resources stuck in limbo, whether due to payer delays, patient payment plans, or simple billing errors. Here are 10 actionable strategies to tackle this issue head-on.
Clean Claims Start with Accurate Front Desk Work
The battle for lower days in A/R often begins at the front desk. Collecting complete and accurate patient information during registration is non-negotiable. A missing subscriber ID or incorrect insurance primary status can result in immediate denials or processing delays. Train your front-desk team to verify insurance details at every appointment (Yes, every. Even for "regulars"). Tools like real-time eligibility checks can prevent headaches down the line.
Understand and Monitor Payer Rules
Payer rules aren't just guidelines—they're hurdles. Familiarity with these rules can pre-empt denials. Does UnitedHealthcare require referrals for specialists? Does Medicare need a specific CMS form completed? Maintain a living document of each payer's quirks and keep it updated. Use it as a quick reference for your billing team. This isn't busywork—it's survival.
Prioritize High-Value Claims
Not all claims are created equal. Prioritize the ones with significant dollar amounts or the highest likelihood of being paid quickly. Focus your energy there first. Follow up on claims over $1,000 before those worth $100. While every dollar counts, the larger claims have a more substantial impact on your A/R days. It’s like triage in the ER—focus on the critical ones first.
Use Automation—but Don't Rely on It Alone
Automation can accelerate processes but it's not a cure-all. Set up automated reminders for claim follow-ups and patient payment notifications. But remember, automation isn't infallible. Human oversight is needed to address anomalies—like those pesky payer portal errors or bizarre claim rejections that don't fit any known pattern. Use automation as an assistant, not a replacement.
Frequent Follow-Ups Are Essential
The squeaky wheel gets the grease. Payers are notorious for delaying payments. Regular follow-up calls or messages can keep your claims on their radar. Aim for every 14-21 days. And yes, expect long hold times. Consider using call-back systems to avoid wasting hours on hold. Document each interaction meticulously. You might need that paper trail.
Tackle Denials the Smart Way
Denials are inevitable. The key is efficient management. Conduct weekly denial management meetings to identify patterns. Is there a recurring denial code? Attack it methodically. For instance, if "CO 97 - Payment is included" keeps appearing, it may indicate issues with bundled services. Address the root cause instead of treating symptoms.
Implement Advance Beneficiary Notices (ABNs)
For services not covered by insurance, use ABNs before treatment. This not only informs patients of their financial responsibility but also protects against future disputes. An ABN upfront can save countless hours of back-and-forth and expedite patient payments, ultimately reducing A/R days.
Engage Patients in the Payment Process
Patient payments are a significant component of A/R. Engage patients proactively. Offer multiple payment avenues—online portals, payment plans, or even financing options. Consider providing incentives for prompt payments. A small discount or waived late fee can encourage timeliness, which ultimately accelerates your cash flow.
Regularly Review A/R Age Buckets
Don't let old receivables gather dust. Regularly review A/R aging reports to identify the most pressing claims. Prioritize those nearing the 90-day mark. Claims older than 90 days are harder to collect. Tackle them before they become write-offs. It's a cycle—address them regularly to keep it manageable.
Foster a Culture of Continuous Improvement
Treat your billing team as strategic partners. Encourage them to propose and test new processes. Provide ongoing training on the latest coding updates or payer policies. Foster a culture where continuous improvement isn't just encouraged—it's expected. A motivated, informed team directly impacts your A/R outcomes.
Bringing It All Together
Days in A/R isn't just a metric—it's a reflection of your practice’s financial health. By adopting these strategies, you're not just improving numbers on a report. You're accelerating cash flow, protecting revenue, and ultimately, enhancing your practice's stability. The tools and tactics are within reach. It’s time to put them to work.
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