If your practice is experiencing squeezed cash flow due to any reason, either it’s the latest policy compliance or any governmental program enrolment following which you are not getting the optimum payments. The new MACRA quality payment program is also challenging the physicians as it is moving to reporting of quality metrics and collections. It’s time to look in to the causes that are hindering the maximum cash flow and you are missing your revenue targets. Cash flow of a practice is dependent on many factors that directly influence the overall performance of the practices. Billing is one of the major factors that can influence the cash flow of your practice. Optimized medical billing is the key to maximizing practice cash flow. Physicians are required to be equally concerned about the practice cash flow along with overall delivery of care. Along with a streamlined billing process, financial dealing with the patients is pivotal to decide the overall collections and cash flow of a practice.
So, looking to improve cash flow of your practice? You have work in various directions.
- The most important, as I said, is the billing. If your billing is not aligned with the latest updates, you will never hit the collections target.
- Accounts Receivable A/R is a familiar term for physicians now. Payments that are due to collect from payers and patients represent the accounts receivable. A well-managed A/R is a must to ensure stability in the cash flow of a practice.
- A well-defined mechanism of collecting payments from your patients is the secret to maintain maximum collections. In the absence of a clear collection process, practices can never achieve the revenue goals.
Practices are required to put in more efforts and energies to improve the collections. Here are a few tips that you should follow to improve the overall cash flow.
Create a collections plan and train your staff
A well-defined collections plan is a must to ensure steady cash flow. Make sure that your staff is well acquainted with all the nitty-gritties of a collection process. Make a policy and train your billing and finance department to strictly follow it.
Analyze reasons of payment denials
Claim denials are one of the major reasons of a low collection. Look in to the reasons why insurance companies are rejecting the payment claims. If it’s wrong documentation or inexpert billing handlers, then you should strictly eliminate all those factors for future that are causing payment denials.
Bill your patients efficiently
Any delay in the collection of the outstanding bill simply increases the overall cost. It’s better to bill your patients upfront and without any delay. Check for the authorized services to your patients and charge them upfront for the other services that are not covered by the insurance company.
Combine your billing with practice management system
An integrated practice management system or an EHR system with your billing makes the overall status of the payments much easier. On a patient’s visit, your front desk can check for the outstanding bills of the last visit and can communicate it to a patient on arrival. An efficient insight in to the outstanding bills is only possible if your billing is integrated with your practice management system.
Multiple payment plans and options
Give your patient the flexibility to pay via any mode of payment. This convenience would maximize your collections. Accept payments from your patients through a credit card, check, bank draft or simply send the reminder through the patient portal to pay for the undue bills. Payment follow-ups, reminders and availability of multiple channels to collect payment is a sure way to maximize the overall collections of your patients.
Do not throw away the old claims
No matter how old is the bill or you simply forgot to collect the remaining amount or copay. You should keep track of every penny that is undue and even it has been there for quite a long time now. Follow up your payments and never ignore an invoice due to its aging status.
Sybrid MD has a well-structured team of medical billing and accounts receivable executives that are helping clients meeting their revenue goals. Contact us if you are experiencing issue with your collections.