When running a medical practice of any size, you know that a strong cash flow is conducive to the success of your business. But what happens when your AR days start to pile up, and you find yourself waiting longer and longer to get paid for the services you provide?

High AR days can have a significant impact on the financial health and revenue cycle management for your practice, making it difficult to cover expenses, invest in new equipment, and pay your staff. That’s why we’ve put together this article to explain how to reduce account receivables coding days in medical billing.

Our goal is to provide you with actionable tips that you can implement today to improve your cash flow and keep your practice running smoothly. So, let’s get started!

Understanding AR Days

Understanding how to reduce account receivables coding is crucial for small medical practice owners who want to effectively manage their cash flow. AR days refer to the average number of days it takes for a medical practice to collect payment from insurance companies and patients after providing services.

Besides the financial repercussions, high AR days can lead to patient unhappiness and affect your practice’s image. Patients, for example, may be dissatisfied or perplexed when they receive invoices for treatments done weeks or even months earlier.

In general, the average amount of AR days in the medical industry varies based on the size of the practice and the services offered. Nonetheless, a usual standard for medical procedures is roughly 30-40 days.

High AR days might potentially lead to the closure of your clinic in the worst-case situation. As such, it is critical to monitor your AR days and take actions to eliminate them.

Tips for Reducing AR Days

Fortunately, there’s plenty of proactive steps you can take to reduce accounts receivable days and streamline your billing process.

We’ve broken them down into bullet points so they’re a bit easier to follow:

Implement a Clear Billing Process With Defined Roles & Responsibilities

– Identify the key players involved in your billing process, including your billing staff and medical providers.

– Clearly define their roles and responsibilities to avoid any confusion.

– Create a document (or let outsourced billing companies code and manage this) that outlines the specific steps involved in the medical billing process, from generating a claim to follow-up on the payment.

– Establish a system to track the progress of each claim, identify any issues and promptly address them.

Improve Documentation To Ensure That All Necessary Information Is Included In Claims

 – This includes things such as patient demographics, insurance information, and detailed descriptions of the services provided.

 – Ensure that your staff is trained on proper documentation procedures for managing accounts receivable.

Address Denied Claims Accurately & In a Timely Manner

 – Review your process for managing denied claims and identify delinquent payments quickly.

 – Establish a system to track and monitor denied claims to ensure that they are addressed promptly.

 – Work closely with insurance providers to identify the cause of the denial and take necessary action to resubmit the claim.

 – Make sure that your billing staff has the necessary skills and training to effectively handle claims denials.

Provide Patient Education On Insurance Coverage & Payment Options

 – Develop educational materials that explain insurance coverage and payment options to patients.

 – Train your staff on how to communicate this information effectively to patients.

 – Clearly communicate any payment policies or options to patients, such as payment plans or online payment options.

 – Offer to work with patients who are struggling with unpaid balances to develop a payment plan that works for both parties (this will also increase patient satisfaction).

Offer Patient Payment Plans Or Incentives For Prompt Payment

 – Implement a system to track and monitor payment plans to ensure that they are paid on time.

 – Consider offering incentives for patients who pay their bills promptly, such as discounts on future services or small gifts.

How To Reduce Account Receivables Coding With PMN

Ultimately, the longer it takes to receive payment, the longer your practice has to wait to reinvest that money back into the business. This can naturally put a burden on your finances and make it more difficult to grow and expand your practice.

That’s where PMN comes in! Their team of experienced billing specialists ensures that your medical claims are accurately submitted every time, preventing various delays and denials.

They can also follow up on unpaid claims and assist with patient billing and collections, which can generally reduce the number of outstanding accounts receivable.

Aside from assisting with reducing your AR days, PMN provides a wide range of physician services, including customized reports for your practice and general coding audits too.

To learn more about how to reduce account receivables coding, contact PMN today! You can reach them over the phone at (949) 215-5055, or if you prefer chatting face to face, visit their office in Laguna Hills, Orange County, California!

FAQs

Can Outsourcing Medical Billing Reduce Costs For Medical Practice Owners?

Generally speaking, if you outsource billing to a third party service you can reduce your overhead as you eliminate the need for in-house billing staff and reduce the risk of errors that often lead to extra AR days.

How Often Should Healthcare Facility Owners Review Their Accounts Receivable Coding Process?

While this is naturally going to be different depending on the size of your practice, it’s advised to review your accounts receivable coding process regularly, ideally on a weekly or monthly basis. This allows for early identification and resolution of any issues or errors.

Are There Any Legal Implications To Incorrect Accounts Receivable Coding?

Incorrect AR coding can have serious legal consequences for medical services. Medical billing and coding must adhere to strict criteria in order to assure correct billing and payment. Any incorrect coding can lead to breaches of these standards, resulting in penalties and fines for the medical practice.