Optimizing accounts receivable is a challenge for all medical practices and billing companies. A swift revenue cycle benefits both the company and the healthcare client. But using automated processes in accounts receivable is not just about speed—it also boosts your company’s overall financial health.

To kick off 2024 with improved efficiency, here are some tips to leverage technology to tighten up A/R:

Automate Balance Reminders and Invoices

Eliminate human error and avoid delays by automating balance reminders. An automated system notifies patients about due payments efficiently and consistently—and at the optimal time. This decreases your workload while simultaneously increasing payment rates.

But automated doesn’t have to mean impersonal. Reminders can also include individualized messages and payment instructions, making it easier for patients to understand their dues and how to settle them. Invoices can be attached with clear breakdowns of services rendered, ensuring transparency. This combination of automation and clarity enhances patient satisfaction while decreasing the administrative load on your staff, freeing them up to focus on more complex tasks.

Ensure Built-In HIPAA Compliance

Because online payment solutions are so user-friendly, patients are more likely to settle their bills promptly. But they also make compliance with healthcare regulations like HIPAA much easier. Medical billing companies are required to ensure that their online platforms have the latest security measures to protect patient information. By integrating payments into current billing systems, payments are reflected in real-time, reducing the chances of billing errors—and time-consuming, costly disputes.

Prioritize User Experience with Online Payments

User experience is crucial. You can optimize the payment portal by making it accessible across all devices with a simple interface that can handle different payment methods.

In the age of online shopping and instant transactions, healthcare payments should be just as easy and straightforward as buying a book online. A simple, convenient payment process is crucial for timely collections.

User-friendly online payment systems enable patients to settle their bills with just a few clicks anywhere, at any time. It creates a hassle-free environment with multiple payment options like instant card payments, digital wallets, or automated bank transfers.

Plus, simplifying the payment process provides clear, itemized bills that patients can understand and review online before making a payment. This transparency radically reduces confusion and disputes which delay and complicate payments. Intuitive interfaces let patients view their billing history, download receipts, and manage payment methods. Quite simply, it empowers them to handle their healthcare finances better.

Integrate a Patient Responsibility Estimator

Patients who receive an accurate cost estimate before or at the time of treatment are more likely to be prepared to cover part of their bill. The patient responsibility estimator does just that, reducing the workload for healthcare providers and taking the guesswork out of the process for patients. And it minimizes post-visit collections, giving employees more time for other, value-added tasks.

If this tool is integrated seamlessly with insurance databases, it fetches real-time updates on coverages and deductibles, maximizing the accuracy of estimates. Providing accurate information to patients builds trust, strengthens patient-provider relationships, and gives patients more control of their healthcare expenses.

Promote At-Visit Collections

Why not take advantage of patient visits to settle collections? This improves cash flow, reduces A/R days, and interaction with the patient provides the perfect opportunity to clarify any issues upfront. Medical billing companies can help healthcare providers do this in many ways: by making front-desk staff aware of the importance of collecting payments, providing scripts, and creating workflows to make the process consistent, efficient, and professional.

Automated payment plans for larger balances can be set up before patients leave the office using various payment methods. This is also the ideal time to make sure patients understand policies regarding payment responsibilities. Front-office staff who excel in this area can also be incentivized to motivate adherence to collection protocols and foster a culture of proactive financial management.

Streamline Appointment Management

Appointment reminders and proper communication prevent revenue loss by radically reducing no-shows. Systems can be programmed to send multiple reminders via text, email, or phone calls, according to patient preference. Efficient scheduling software enables last-minute fill-ins for cancellations, maximizing potential revenue.

On top of these efficiencies, automated appointment systems collect data that provide valuable insights. Medical billing companies can help healthcare providers by analyzing appointment patterns to identify the root causes of missed appointments—and develop strategies to address them.

Encourage Timely A/R Follow-up

The faster A/R issues are resolved, the better your cash flow. To optimize dealing with A/R, medical offices should implement a staggered follow-up process, first addressing the most recent receivables with the highest recovery probability.

Then follow-up tasks can be scheduled for accounts as they reach certain aging milestones, with escalations for accounts showing signs of becoming bad debt. A robust follow-up process should include personalized contact such as phone calls for larger balances. For smaller or overdue payments, messages can be automated and tailored to the specific needs and behaviors of the patient population served.

Analyze A/R for Strategic Insights

A/R analytics takes raw data and transforms them into actionable insights. By tracking and analyzing things such as the average days in A/R, claim denial rates, and patient payment trends, your company can pinpoint operational inefficiencies and identify opportunities to improve.

But there’s more. Advanced analytics can also forecast future trends, giving you the chance to be proactive in A/R management strategies. Sharing these insights with healthcare providers helps them understand the financial health of their practice and the effectiveness of their billing operations, ultimately leading to more informed decision-making and strategic planning for revenue cycle management.

Understand the Declining Value of A/R with Age

The value of accounts receivable decreases as it ages. “Days in A/R” indicates the average number of days it takes to collect payments due and is an essential metric for the financial health of a practice.

As an unwritten rule, an A/R over 60 days is problematic, since at this point the receivables are at risk of becoming uncollectible. An A/R under 40 days is typically seen as a sign of healthy cash flow and efficient billing operations.

The importance of closely monitoring “Days in A/R” cannot be underestimated as it has a profound impact on business. It leads to faster revenue recognition, better cash flow management, and improved financial stability.

Keeping close tabs on “Days in A/R” gives your company the ability to be strategic about which accounts to prioritize for collection efforts and when to become active to collect overdue payments. By actively managing “Days in A/R,” you ensure more predictable revenue streams for healthcare providers and avoid the financial strain of uncollected debt.

Start the New Year with a Solid A/R Plan

The new year is the perfect opportunity for medical offices and billing companies to revamp A/R strategies, optimizing them for successful revenue cycle management. By automating systems and enabling patients to be proactive, you can check the box and forget about tracking down overdue payments.

Now is the time to assess your technology stack, client expectations, and analytics. Start the new year with optimized, efficient A/R processes and reap the benefits throughout 2024.

Open Practice is happy to help you on your road to improved processes. Learn more about the tools we provide to ensure a successful new year with an unmatched A/R process.

Streamline Accounts Receivable in the New Year with these Tips