Performing an accounts receivable review or AR review is a necessary process to ensure a successful medical practice. Whether you have billing in house or outsource this function, it is imperative that providers perform through reviews. While you may be receiving monthly reports, these reports many times do not provide a true pulse of the revenue cycle function.
An AR review performed by IHBS, allows a practice to gain a true understanding of the health of the practice as well as any gaps in process. Many times, providers just look at the monthly revenue and don’t raise alarm until the financial health of the practice is in decline. All office functions impact monthly revenue and therefore must operate in peak form.
While many management companies would just perform the review and provide a report, Innovative Healthcare takes it one step further. We understand that reports only go so far and your success depends on implementing the solutions. Many times, this is where we see consulting fall short. This is why our AR review also comes with an added on training component. If we find areas that are underperforming, we can also assist in training your staff on best practices. The training component will close the loop to ensure your practice sees the full benefit of the AR review.
Why is an accounts receivable review necessary?
A medical accounts receivable (AR) review is a crucial process for medical doctors and healthcare practices, as it involves a comprehensive analysis of outstanding payments owed to the practice.
Here are several reasons why a medical doctor would want to conduct a medical accounts receivable review:
- Identifying Revenue Leakage:
- An AR review helps medical doctors identify any potential revenue leakage within their practice. The AR review pinpoints areas that need improvement.
- Ensuring Billing Accuracy:
- Doctors are often reliant on billing and coding processes to receive timely and accurate reimbursements for the services they provide. Conducting an AR review allows them to ensure that billing and coding practices are accurate. This process will reduce the risk of claim denials or delays.
- Optimizing Revenue Cycle Management:
- A well-managed revenue cycle processes claims efficiently and ensures timely payments are received. It is essential for the financial health of a medical practice. Reviewing the accounts receivable will assist in optimizing the revenue cycle process. Ensures that claims are processed efficiently, and payments are received on time.
- Improving Cash Flow:
- Timely and accurate reimbursement is crucial for maintaining a healthy cash flow within a medical practice. By reviewing accounts receivable, doctors can implement strategies to expedite the payment process, leading to improved cash flow and financial stability.
- Enhancing Operational Efficiency:
- Inefficiencies in the billing and collection processes can result in delayed payments. A thorough AR review allows medical doctors to identify and eliminate bottlenecks, streamline workflows, and enhance the overall operational efficiency of the practice.
- Improving Patient Relations:
- Delays in processing insurance claims and billing discrepancies can lead to frustration among patients. By conducting an AR review, medical doctors can identify issues that may be causing delays in patient billing, allowing them to address these concerns and maintain positive patient relations.
- Strategic Decision-Making:
- A comprehensive AR review provides valuable insights that can inform strategic decision-making within a medical practice. Doctors can use the data obtained from the review to make informed decisions about staffing, technology investments, and process improvements.
A medical accounts receivable review is a proactive approach to financial management for medical doctors. By regularly assessing and optimizing their accounts receivable processes, doctors can enhance their practice’s financial health, improve operational efficiency, and ultimately provide better patient care.