Every medical practice struggles financially to keep a smooth revenue cycle process. In addition, reimbursement delays and collection problems reduce the efficiency of the RCM cycle. Further, increasing coinsurance amounts and deductibles lead to financial problems for medical practices. As a result, reducing accounts receivable becomes a crucial part of enhancing the RCM process. Therefore, focusing on the claim denials to ensure seamless reimbursements is an essential part of revenue maximization.
Healthcare providers need to make sure that they can reduce the days of claim in A/R for increasing practice profitability. This is possible when they are successfully able to track the accounts receivable days. In addition, it takes 4 to 6 weeks to get your reimbursements from the insurance companies after you submit a claim. Hence, besides providing quality care to the patients, you should focus on reducing the A/R to get paid on time. These three steps can help you decrease the number of days on A/R and improve your revenue cycle.
Medical Billing is the most important part of the financial cycle; it can directly affect the workflow of any medical practice. Thus, identifying the gaps and loopholes in the RCM is the first step to reducing Accounts Receivable. If you are aware of the financial hindrances and clearly understand the expenditures, you can make things right. Also, knowing exactly how much you are losing due to claim denials can help you reduce A/R. Developing the foresight to predict the problems that can happen helps you make the right decisions.
Keeping an eye on the Revenue Cycle Process helps you avoid claim denials and suffer from financial losses. In addition, if you are going to expand your practice and have delayed reimbursements, it can hamper the practice growth. Thus, practices need to proactively look into the RCM cycle to make sure that you do not lose money. As a result, you can take control of all the matters that are responsible for practice growth.
To get payments on time, your practice needs to have transparent processes. As a result, you can get payments on time which results in greater practice profitability. Also, a lack of having the information which is transparent can hinder practice growth. Being financially transparent is a key factor that decides practice success. If you do not have transparent information about unpaid claims, it is really hard to optimize practice growth.
To get the desired result, your practice need to have a record of pending and paid claims. However, not having the transparent record can stop you from getting what you want. Thus, make sure you receive payments on time by maintaining a clear record otherwise you are going to lose money. Therefore, focus on reducing the time of getting pending payments. The easiest way to reduce these gaps is to digitize the Billing Process. Let’s discuss it in the last step.