Strategies for Decreasing Legacy Accounts Receivable in Healthcare

 

For healthcare providers, especially those that have been in operation for a while, reducing legacy accounts receivable is a significant task. Patients' accounts with unpaid amounts that are more than 90 days old are referred to as legacy accounts. These amounts have a big impact on a provider's finances, so it's important to take proactive measures to handle them well. We will go through seven (7) ways in this post that healthcare providers may use to successfully reduce legacy accounts receivable. In this article, we will look into seven strategies for decreasing legacy accounts receivable in healthcare which will help you to reduce legacy effectively.

Set Accounts in Priority

Healthcare providers should give priority to accounts based on their age, size, and collectability in order to decrease legacy accounts receivable. This enables service providers to concentrate initially on the accounts that are most likely to produce the best return. When deciding which accounts to prioritize, age is a key aspect. Providers should give older accounts priority over younger ones as they are more likely to become uncollectible. Larger accounts should also be given priority by providers because they have a substantial influence on the practice's financial stability. Prioritizing accounts also have to take collectability into consideration. The accounts that are most likely to be rapidly reimbursed should be the providers' main emphasis. This comprises accounts that are covered by insurance and those that are not in dispute. Healthcare providers may increase their collection efficiency and lower the risk of unpaid invoices by prioritizing accounts in this way.

Check the Billing Information

Healthcare providers should check each account's billing information to make sure payments are made on time. To prevent any problems, providers should verify the correctness of patient information, insurance information, and billing codes. Healthcare practitioners should double-check patient information, examine claims, validate insurance eligibility, verify payment histories, and engage with patients to improve billing information accuracy. Providers should utilize provider portals and billing software to identify errors and guarantee proper billing. Healthcare providers may prevent payment delays and lower the possibility of their claims being refused by taking the time to confirm billing information. In order to succeed over the long run, the practice must have a good connection with both patients and insurance companies.

Regular follow up 

Effective accounts receivable management requires routine follow-up with patients and insurance companies. Accounts with unpaid balances should have a regular follow-up program established by providers. This may entail calling the accountable parties or sending out reminders. The risk of uncollectible accounts is decreased through routine follow-up, which also helps to keep accounts current. Providers should make sure that patients and insurance companies are aware of their unpaid amounts by establishing a follow-up program. This can increase the chance of on-time payment and lower the risk of disputes. Regular follow-up can improve patient satisfaction and preserve a good connection with patients, insurance companies, and both.

Discuss Payment Plans

A good strategy to deal with unpaid amounts is to work out payment arrangements with patients and insurance companies. Providers should collaborate with patients, insurance companies, and payers to come to reasonable and workable payment arrangements. This can lessen the possibility of outstanding balances and enhance the practice's financial stability. To promote on-time payments, providers could think about offering discounts or implementing automated payments. Maintaining a positive relationship with patients and insurance companies is crucial for the practice's long-term success. This may be done through negotiating payment options.

Write Off Uncollectible Accounts

Accounts receivable management must include writing off accounts that are deemed uncollectible. However, it is crucial to make sure that the choice to write off an account is supported by reasonable rationale and complies with all relevant regulations. Before writing off an account, providers should make sure that all legal criteria have been satisfied and keep track of all attempts to recover the unpaid amount. The danger of revenue loss is decreased by writing off uncollectible accounts, which helps suppliers manage their outstanding amounts. Additionally, it aids in the maintenance of correct financial records and reduces the possibility of audit results. However, providers must make sure that the choice to write off an account is taken thoughtfully and after carefully weighing all of the alternatives.

Stay current with regulations

The laws that apply to them, especially those that deal with billing and collections, should be kept up to date by healthcare providers. To avoid paying expensive fines and penalties, compliance is essential. A compliance strategy should be in place for providers, including frequent training, audits, and reviews of policies and procedures. Healthcare providers may reduce the risk of legal action and avoid costly blunders by staying up to date on legislation. The primary concern for providers should be compliance, and they should make sure that all employees are aware of their legal obligations. To guarantee that staff workers are knowledgeable about the most recent rules and regulations, frequent updates should be given.

Guide staff

In order to manage accounts receivable effectively, staff must get proper training. The best procedures for collections, follow-up, and communication with patients and insurance providers should be taught to staff employees who are in charge of handling accounts receivable. Guidelines for billing and coding, handling insurance claims, and collecting best practices should all be included in training. Healthcare providers may increase the effectiveness of their claims processing and reduce the possibility of denied claims by investing in employee training. The long-term sustainability of the practice depends on maintaining favorable connections with patients and insurance companies, which may be facilitated by properly trained employees. To make sure that staff employees are knowledgeable on the most recent rules and best practices, training should be ongoing.

About ecare

ecare india is one of the leading healthcare revenue cycle management company in india, that offers legacy account receivable services to healthcare providers. Our healthcare revenue cycle solutions benefit the clients’ business through Aged AR clean-ups and bad debt reduction allowing them to concentrate on their operation or practice. For more information about our legacy account receivable services call us at +1-813-666-0028 or mail us sales@ecareindia.com.