Effective accounts receivable (AR) management is essential for the financial health of your medical practice. Timely collection of payments from patients and insurance payers helps maintain a steady cash flow, which is essential for the long-term success of your practice.
Accounts receivable is an asset in your balance sheet. With proper management, you can turn this important asset into a reliable source of revenue.
At Priority Medical Billing, we are here to support your practice with our expertise in accounts receivable management. Our team focuses on minimizing unpaid balances, reducing payment delays, and resolving denied or underpaid claims.
Our services help keep your accounts receivable in excellent condition. With us on your side, you can concentrate on providing great care to your patients while we work to optimize your practice’s financial performance.
Why Managing Accounts Receivable is Important
Accounts receivable is simply the money owed to your practice for services you have already provided. This income is vital because it helps cover everyday costs like paying staff, rent, and buying medical supplies while also driving your practice’s profits.
If payments from patients or insurance companies are delayed, it can cause cash flow problems for your practice. Without a steady flow of incoming payments, your practice may struggle to cover essential expenses. Over time, a large amount of unpaid invoices can lead to financial instability.
Effective accounts receivable management ensures overdue payments are collected on time, reducing outstanding balances and helping to maintain a healthy cash flow. This allows your practice to meet financial commitments and invest in future growth.
In the long run, managing AR effectively can minimize financial risks and set the foundation for your practice's lasting success.
Our Approach to Accounts Receivable Management
At Priority Medical Billing, our approach to accounts receivable management is not just about collecting payments - it is about ensuring the financial health and stability of your practice.
We take a proactive and strategic approach that helps ensure smooth operations, reduce unpaid balance, and streamline your cash flow.
Timely Resolution
At Priority Medical Billing, we know that timely action is essential for efficient accounts receivable management. We take prompt steps for outstanding bills and claims, so you do not have to worry about unpaid invoices sitting in limbo.
Unpaid invoices that drag on for too long can become a serious risk as the possibility of collecting those payments diminishes over time. This not only reduces your revenue but also ties up vital cash flow.
Our team initiates action on unpaid invoices within 14-30 days of billing. This quick response helps prevent payments from getting stuck and reduces the risk of overdue balances becoming bad debt. The sooner we act, the faster the payment process will be.
Our advanced practice management software sends automated reminders for overdue payments and helps maintain regular follow-ups with insurance companies, patients, and third-party payers. Our streamlined approach ensures collections stay on track without overburdening your practice staff.
Minimal Accounts Receivable Days
The time it takes to settle accounts receivable can greatly affect your practice’s cash flow. AR days indicate how long it typically takes to collect payments owed to you. When AR days are high, it means a significant portion of your revenue is tied up in unpaid invoices, which can hinder your practice's financial stability.
Extended accounts receivable days can strain your finances and impact your overall financial health. When cash flow is slow, meeting your financial obligations and adjusting to economic changes become challenging.
Furthermore, a backlog of accounts receivable can increase administrative burdens as more time and resources are spent on follow-ups and collections.
Keeping your average AR days low is vital to reducing the risk of bad debt and ensuring a healthy cash flow. Experts advise keeping your average AR days to 35 or fewer. If you have a high percentage of accounts receivable that are over 90 days old, this serves as a warning sign for potential collection issues.
At Priority Medical Billing, we help you minimize AR days by focusing on accurate billing and prompt claims submission. Our expert team efficiently manages follow-ups and maintains clear communication with patients and the insurance payer. This proactive approach reduces the number of unpaid claims, keeping your cash flow steady and your practice thriving.
Handling Outstanding Payments & Bills
When a bill is long overdue, we act to resolve it quickly. Our advanced practice management software identifies outstanding accounts, allowing us to focus on the aging balances that need attention.
Effective communication plays a crucial role in speeding up overdue payments. We keep in close contact with patients and insurance payers by sending automated reminders and personalized messages.
If an account remains unpaid after a specified period, we may initiate a formal collections process. This process includes sending final notices to remind patients of their outstanding balances.
If payments are still not received, we may consider referring the account to collection agencies as a last resort. While we aim to avoid these measures, they may sometimes be necessary to maintain the financial stability of your practice.
Tracking Accounts Receivable Regularly
Keeping track of your healthcare AR is crucial for the financial well-being of your practice. By effectively monitoring your accounts receivable, we can identify outstanding debts and evaluate how well our collection efforts are performing.
Regular reviews of your AR can reveal patterns in payment delays. For example, if certain insurers or patients frequently pay late, we can take prompt action to address those issues. Our data-driven strategies prioritize collections from high-value accounts.
Without consistent tracking, you can risk missing out on potential revenue and opportunities to improve your payment collection processes. Our team provides regular financial reports that offer valuable insights into your accounts receivable.
These reports highlight areas where the claims process could be improved, helping to reduce payment delays and ensuring a better financial experience for your practice.
Handling Claim Denials & Rejections
Claims can get denied or rejected by the insurance payer for various reasons. When this happens, we address the issues promptly so you do not face any unnecessary delays in payment.
First, we quickly figure out why a claim was denied or rejected, whether it is due to errors or missing paperwork. If there is any documentation issue, our team gets to work on correcting it right away. We ensure that all necessary information is accurate and complete, which improves the chances of claims being accepted on resubmission.
After that, we follow up with the relevant parties to ensure that corrected claims are processed and paid promptly.
Benefits of Partnering with Priority Medical Billing
By partnering with us, you get an expert team that manages all follow-ups with precision and efficiency. Our expertise and commitment ensure that you get paid faster and with less stress. With our services, you experience:
Our experienced team handles all aspects of the revenue cycle, allowing you to allocate your resources more effectively.
Get Started Today
At Priority Medical Billing, we offer expert medical billing solutions tailored to meet the needs of your practice. Our accounts receivable management service helps keep your practice’s finances on track and minimize delays.
To find out how we can help your practice, please call 708-362-6080 or fill out the online form.
