Low-dollar accounts receivable for 3 Tips: This can be done effectively, efficiently, and profitably by following the three pillars of low- dollar AR below.
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Leveraging Offshore Resources for Enhanced Revenue Cycle Management
Data doesn’t just tell a story, it can also provide a roadmap for managing low-dollar balances. Use data to identify accounts with the highest collection potential and to understand good collection times based on timely deposit limits and historical payer turnaround times.
Understanding specific payment models will significantly improve your AR strategy and drive collection efforts. For example, developing thoughtful account segmentation can help prioritize low-value accounts by identifying meaningful groups and the ability to collect from those groups.
2 Boost Revenue & Reclaim Resources: How Automation Redefines RCM & Collections
The increasing complexity of automated systems significantly improves revenue cycle management (RCM) and collection efforts. Strategic automation helps pursue payers more effectively and can handle repetitive administrative tasks like account reconciliation and status updates.
To alleviate staffing shortages – another major factor causing healthcare organizations to overlook low-cost AR – automation helps remove people from simple monitoring tasks. Adding relevant APIs to your payment gateway can help increase profits by 3x.
Result? Fewer people touch AR costs are lower and the profits of collections increase. For example, automated phone calls can be a powerful tool for freeing up resources for more important tasks.
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Low-dollar accounts receivable: The Strategic Advantage of Offshore RCM:
Given the financial and staffing challenges facing healthcare today, offshore resources, particularly those from a dedicated revenue cycle management company, are more than a viable option, they are necessary. When fully understood and used in the right areas of the organization, it can benefit the business.
When it comes to revenue cycle management activities, outsourcing leads to many benefits beyond cost savings, such as a broader RCM approach, reduced acquisition costs, reduced recruiting challenges, and retention by sourcing qualified
Resources from a global talent pool. This results in improved cost-benefit margins for the same level of production. When implemented strategically and correctly, outsourcing follows the same processes as all other AR efforts and delivers the same productivity.
Other elements include a high-security compliance program for overseas offices and the ability to create global “sun tracking” to maximize productive time during each workday job. Look for partners who can add immediate value and transferability to hospitals (there are often no internal to external transfer options).
Low-dollar accounts receivable: A strategic must For primary care revenue:
If primary care practices avoid managing low-dollar accounts receivable (AR), the question first question to ask is: why? Yes, the volume is higher – often much higher – than “normal” AR, and, as the name suggests, the monetary value of each account is low. However, cumulatively, it is extremely beneficial to manage and resolve these imbalances effectively.
Our data shows that up to 80% of open hospital insurance accounts are low-value accounts and account for up to 15% of unpaid income. When it comes to physician groups, all RAs are low-cost, so developing an effective work strategy is essential for financial success. This is especially true for independent physicians in private practice, who do not have access to the same resources as large physician groups.
Overall, the approach to low-dollar accounts receivable in healthcare organizations is poor, as internal teams often ignore these accounts in favor of larger balances that provide better profitability for time to collect them.
While this may make sense from a resource perspective, there are various ways to close the gap when collecting these high-value balances rather than leaving money on the table.
Instead of ignoring this essential 15% of revenue, there is a three-tiered strategic approach to profitably managing and effectively handling low-value receivables.
It’s time to embrace low-dollar accounts receivable. Why transfer recoverable revenue? It’s helpful to make a plan now to collect low-dollar balances.
