You can simply consider your hospital accounts revenue cycle as a well-oiled engine. You can easily pay doctors, cover necessary expenses, invest in research, and upgrade the existing technology when your revenue cycle remains healthy. But things can go slowly when there is a gap in the process. Accounts receivable days pile up, cash flow stalls and collections take longer than they should. Every step matters—checking patient eligibility, filing claims, handling denials—because even a small hiccup can throw the whole system off balance.
You must manage your hospital accounts receivable efficiently to ensure the seamless functioning of your revenue cycle process. Always remember that streamlining the entire process is not an overnight affair. It requires a collaborative approach from the doctors, care coordinators, and administrative staff members. Thus, you must focus on minimizing your accounts receivable days to enjoy healthy revenue and here are the key strategies that you must follow.
6 Effective strategies to improve your hospital accounts receivable:
1) Make your RCM more front-end focused:
Handling the revenue cycle from the front end makes life easier for both doctors and patients. It takes admin work off the doctor’s plate and helps bring in payments faster. When a patient books a visit, the office staff should check insurance, get pre-authorization, know about the potential out-of-pocket costs for patients, and handle other steps right away to ensure your accounts receivable remains low. Doing this early, instead of later, helps collect payments upfront, lowers collection costs, and cuts down on unpaid bills.
2) Train Your Staff to Spot Billing Issues Early
Your revenue cycle can always stay strong when your team knows how to handle it efficiently. If your team catches billing mistakes early, you can avoid costly delays. Train your front desk and billing staff to spot errors in insurance details, coding, and patient info before claims go out. A small mistake can lead to a denied claim, extra paperwork, and delayed payments. Fixing issues upfront keeps your cash flow steady and prevents accounts receivable from piling up.
3) Follow Up on Unpaid Claims Quickly
You should not wait too long to follow up on your delinquent claims, as it can badly hamper your cash flow. You must act fast when a claim is rejected. Your administrative team should check the reason behind the denial, fix any errors, and resubmit the claim promptly. It is always a better idea to set a particular schedule to track outstanding invoices and follow up regularly. Always remember that the longer a claim remains unpaid, the more difficult it becomes to collect.
4) Prioritize Older AR to Recover Payments Faster
The longer a claim stays unpaid, the harder it is to collect. Focus on your oldest accounts receivable first. Identify claims that are nearing deadlines and take quick action. Reach out to insurance companies, correct any issues, and resubmit claims before they become too difficult to recover. Keeping a close eye on aged AR helps reduce bad debt and improves cash flow.
5) Offer Multiple Payment Options for Faster Collection
Make sure your patients always find easy ways to pay their out-of-pocket payments. You should offer different payment modes like credit cards, online payments, installment options, etc. There are patients who feel it is convenient to pay their bills digitally, while others still prefer to pay by cash. Offering flexible payment options always improves your cash flow by reducing your outstanding balances.
6) Send Clear and Timely Patient Bills
Patients are more likely to pay on time when they understand their bills. Make sure invoices are simple, clear, and sent without delay. Break down charges, list due dates, and explain payment options. If patients have questions, provide easy ways to reach your front-end team. Clear communication helps reduce confusion, prevents payment delays, and improves cash flow.
Read More:
The Perks of Outsourcing Hospital Accounts Receivable and Denial Management
Learn more about how outsourcing hospital AR management boosts cash flow by reducing claim denials, speeding up collections, and ensuring compliance, all while
Unfortunately, the harsh reality is that 50% of hospitals reported that they encountered more than $100 million in accounts receivable for claims that were older than six months. Do you know the vital reason behind it? It is the shortage of experienced staff members who can efficiently manage hospital accounts receivable. To avoid the hassle of managing accounts receivable, most hospitals are now outsourcing their accounts receivable management to professional companies. A professional hospital accounts receivable solution knows what it takes to implement all the above-mentioned strategies, minimize your delinquent accounts, and boost your overall fiscal revenue. So, take a pragmatic decision now and hire the best company to handle your hospital accounts receivable.
