In 2021, 49% of surveyed physicians reported an increase in time in accounts receivable (A/R). The longer an invoice is in A/R, the less likely billers will collect. These facts have catapulted the medical field into searching for more effective collection methods.
Researchers have determined technology and data analysis are efficient at improving denial management in healthcare. This combination offers strategic planning and the tools to execute goals.
Here’s how to use automation and analytics to reduce A/R.
AI benefits your practice by delivering consistent, speedy results. Well-developed systems will significantly boost accuracy and efficiency. Coding AI will quickly sort through a patient’s records and match services with the appropriate codes. This efficiency relieves staff who can focus on A/R retrieval.
However, modern software still requires human oversight to maximize its potential. Ensure that you allocate experienced workers to oversee machine operations.
Currently, many practices gather basic information and refer to it as analytics. This data may include a patient’s failure to pay or an extended period in A/R.
Unfortunately, this information provides very limited visibility. Even experienced professionals can’t determine the problem's cause based on such limited data. This restriction is why multidimensional analysis is so important. With different dimensions, a provider can determine which variables caused the undesirable outcome.
A multidimensional analysis will incorporate multiple variables. Typically, the dimensions include studying a population and tracking results over a period of time (longitudinally). The combination of these elements gives the analysis its multidimensional label.
This method maximizes data gathering because the population provides multiple references. Studying the population longitudinally offers a wider time frame for variables to shift.
When prioritizing accounts, it’s easy to focus on the longest outstanding balances or high-dollar amounts. However, this approach can be very effective and is overly simplistic. You must ensure that there is a high percentage of success in getting that revenue into your account for those claims reimbursements being delayed or you risk.
Among potentially avoidable denials, 24% are non-recoverable. Other rejections are reclaimable, but have potentially low chances of success are low. Avoid chasing A/R that has low chances of getting a return.
Practices must understand some key averages of clinics in their field. Knowing how this data compares to your metrics will help set the correct course for potential improvements. Here are a few crucial areas to track:
● Denials: Some denials are responsible for significant A/R backlogging. As such, it’s critical to track what characteristics these errors share. Target the highest financially impacted and longest time delays in reimbursement areas where denials consistently occur.
● Staff Productivity: Measure what each staff member does as it relates to A/R reduction. This information will tell you how efficient your staff is given the current processes.
● Net Collections Ratio: This Key Performance Indicator (KPI) provides offers in-depth knowledge into how streamlined he current A/R is being managed and how effective the current A/R process is. It also provides clarity as to which accounts are most efficient to pursue.
Plutus Health has the tools and staff necessary to conduct an in-depth A/R analysis. Our team will work with you to form a realistic, measurable map toward RCM improvement. Then, we deliver regular reports that provide visibility into all the paths toward improvement. Contact us today to realize A/R reduction.
1. Incorporate AI as a significant factor in your workflow.
2. Avoid single dimension data.
3. Invest in producing a multidimensional analysis.
4. Prioritize efficient A/R accounts.
5. Determine which metrics are most important and monitor them closely.
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