A professional medical billing company can help eliminate accounts receivables more successfully through their specialized collection processes. The decision to outsource Accounts receivable (AR) services to a reputable medical billing company is becoming increasingly popular among healthcare providers. This article explores the three key advantages of collaborating with a trusted medical billing company
What is AR in Medical Billing
In medical billing, accounts receivable involves collecting payments from insurance and patients for services rendered. Maintaining low accounts receivable is vital for financial sustainability. Efficient billing reduces the 91-120 and 121+ days categories, as most insurance pays within 30-60 days of claim submission. Higher AR in these categories may indicate billing inefficiency.
Why AR Follow up is important for medical billing
Consistent AR follow up is crucial for medical billing as it impacts a practice’s cash flow and long term financial stability. Unrecovered receivables tie up capital that could otherwise be used to run business operations. Regular contact with patients makes them aware of outstanding balances and payment arrangements, increasing the chances of collection. It also ensures bills do not become too aged and difficult to recoup over time. Follow up is key to maximizing recovery of funds owed.
The Role of Medical Billing Company in Recovering Old AR
Medical billing companies play a crucial role in healthcare by managing billing processes. They specialize in AR recovery, efficiently navigating complex healthcare billing systems and regulations. Outsourcing AR recovery to these experts offers advantages like specialized knowledge, dedicated resources, and improved cash flow, allowing healthcare providers to focus on patient care while ensuring financial stability.
How Medical Billing Company can Do Better AR recovery than you
1. Enhanced Revenue Recovery
One of the primary reasons healthcare providers turn to professional medical billing companies is the promise of enhanced revenue recovery. The complexities of medical billing, including coding, claim submissions, and navigating insurance regulations, can result in revenue leakage when handled in-house. By outsourcing to experts, healthcare practices can significantly reduce revenue losses.
Professional medical billing companies employ skilled coders and billing specialists who are well-versed in the intricacies of healthcare reimbursement. They meticulously review claims, ensuring accuracy and compliance with the latest coding and billing guidelines. This attention to detail translates into higher reimbursement rates and faster payments.
Moreover, these companies employ advanced revenue cycle management (RCM) software that streamlines the billing process. This technology identifies and rectifies errors, reduces claim denials, and accelerates the claims processing timeline. Ultimately, partnering with a professional medical billing company substantially boosts revenue recovery for your practice.
2. Focus on Core Medical Services
Medical practitioners should prioritize patient care and clinical services above administrative tasks. Handling in-house billing functions can divert valuable time and resources from patient interaction. By outsourcing medical billing, healthcare providers can refocus on their core responsibilities, leading to improved patient care and satisfaction.
Professional medical billing companies manage the billing process from start to finish. This includes verifying insurance eligibility, submitting claims, following up on denials, and patient billing inquiries. This comprehensive approach not only lightens the workload for healthcare providers but also reduces the risk of errors and compliance issues.
3. Stay Compliant with Evolving Regulations
Medical billing is subject to frequent changes in regulations and compliance requirements. Keeping up with these updates can be a daunting task for medical practices. However, medical billing companies specialize in staying current with industry regulations, including ICD-10 coding, HIPAA compliance, and payer-specific guidelines.
Partnering with a professional medical billing company ensures your practice complies with these evolving regulations. This minimizes the risk of audits, penalties, and legal issues, which can be detrimental to your healthcare facility’s reputation and financial stability.
Conclusion
In conclusion, outsourcing medical billing services to a reputable medical billing company offers healthcare practices a competitive edge by enhancing revenue recovery, allowing for a laser focus on core medical services, and ensuring compliance with ever-changing regulations. To thrive in today’s healthcare landscape, consider the strategic advantage of partnering with a professional medical billing company.
