Accounts receivable. It’s a term that can send shivers down the spine of anyone who dreads collecting payments from their customers or vendors. But you can make the horror of AR disappear—as well as reduce your AR costs—when you find the right solution.
What are the unique challenges of accounts receivable in medical billing? Is it possible to lower your expenses related to AR? And what are the advantages of outsourcing your accounts receivable functions?
The Challenges of Accounts Receivable in Medical Billing
Managing accounts receivable (AR) can be a highly complex process because the medical industry is in a near-constant state of evolution. Frequent changes — especially adjustments in payor policies, copayments, coinsurance, and other variables — forces regular modifications to DME providers’ plans, strategies, and requirements throughout the billing process.
That makes minimizing problems, maintaining cash flow, and keeping your business running efficiently a never-ending challenge.
Even without frequent changes, the accounts receivable process itself is time consuming and fraught with obstacles. With a stream of documents to review, claims to manage, and the nonstop need for collection, AR can become more work than many firms can handle.
How to Lower Costs of Accounts Receivable
At first glance, it may seem that managing one’s own accounts receivable is the more economical solution. But when you outsource your AR, you’re able to pass along the most time-consuming, headache-inducing, and costly aspects. You can lower your expenses by assigning these duties to a third party firm:
- Claim Review. The time and effort it takes to review every claim adds up fast, especially when you include the time for reviewing the policies and identifying any adjustments that need to be made. Problematic claims often need refiling, increasing the costs required for posting payments, data entry, and verification.
- Collection Services. For DME clients, this involves collecting funds from any account that owes you payments. If you’re not collecting, you’re not receiving your revenue, which can cause major problems for your cash flow. When you collect debts faster, you’re also improving your efficiency and lowering how much it costs you to make all those collections.
- Follow-Up. Medical billing accounts receivable requires follow-up to close any loose ends and ensure that refunds are processed as quickly as possible. Sometimes denied claims need to be re-opened and re-processed to receive the maximum reimbursement.
Advantages of Outsourcing Accounts Receivable
When you partner with a third-party firm to manage your AR, you get the benefit of efficiency — someone who knows how to run the entire process quickly and cost-effectively. They help with anything AR related, including software conversions, price table configuration, EFT and EDI enrollment, and more.
You’re able to enjoy full accuracy and compliance with all your AR paperwork. Since companies like Medbill are intimately familiar with all of the rules, regulations, and changes, they free up all the time it would take for your company to stay informed.
DMEs are also able to avoid fraudulent claims by relying on experts who know how to identify false claims. If there’s an issue, they immediately bring it to the attention of the client-assigned contact and resolve it as soon as possible. After all, the longer it takes to process your AR, the more expensive AR costs you.
When your accounts receivable process is streamlined and managed by experts, you can be confident that everything is being handled properly and as efficiently as possible.
Choose Medbill to Reduce Accounts Receivable
Medbill has been assisting DME providers with accounts receivable since 2005. We’re an industry leader with the highest possible standards and a complete commitment to customer satisfaction.
Working with Medbill to reduce accounts receivable gives you ultimate control over your AR process because:
- Medbill uses proprietary algorithms to guide our collection team for fast and accurate processing.
- Medbill is based in the United States, which is essential for HIPAA compliance.
- Medbill’s team of professionals are experts at AR collection and other related responsibilities.
- Medbill doesn’t get paid until the work is done. After all, the goal of outsourcing accounts receivable is to ensure reimbursement is collected and sustained.
- Medbill is dedicated to accuracy and keen attention to detail. Mistakes can be costly, so we have systems and failsafe measures in place to ensure every job is thorough and correct.
Find out how much time, money, and frustration you can save by partnering with Medbill for all your accounts receivable needs. Contact us today to get your free estimate.