Turning Challenges into Cash Flow: DME AR Collection Efficiency Tips
After a patient or the patient's insurance provider has been billed for DME services, accounts receivable (A/R) refers to the money owed to the practice. The practice can calculate A/R in a variety of ways. Firstly, a practice often keeps track of "Days in A/R" by dividing A/R totals by average daily charges. Secondly, accounts are typically classified according to their age, such as:
- 1 to 30 days after billing
- 31 to 60 days after billing
- 61-90 days since billing
- 91-120 days since billing
According to research, a provider may expect to receive around 10 cents on the dollar for each account over 120 days old.
Unfortunately, failing to manage ARs on time overburdens financial departments, increases workload, and often results in excessive costs and revenue leakage for the DME practice.
Other Challenges:
Excessive revenue leakage is a severe problem for DME healthcare providers in the United States. Many hospitals already have negative margins that fall hundreds of millions of dollars short of their income.According to research in healthcare conducted in 2018, more than 40% of respondents' hospitals lose 10% or more to leakage. Perhaps more concerning is the fact that 23% of respondents are unaware of the leakage costs their practices bear. In fact, DME providers cannot afford to lose revenue for extended periods.
Tips to Turn DME AR Collection Challenges into Cash Flows:
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Maintain Open Patient Communication
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Use an updated Medical Billing Software
A/R workflow automation saves time by managing some of the more time-consuming aspects of A/R. This form of automation not only makes invoicing and payment collection prompter but also decreases issues such as overlooked A/R accounts or claim denials.
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Review your Collections
Although this procedure appears evident, it works quite well in practice. All thanks to your DME billing staff for their efforts; it is not an easy chore to examine and contact patients to collect past-due invoices.
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Consistently Run A/R Reports
- Delays between services rendered and invoicing
- Average AR cycles
- Collection rates
- Aged accounts
Outsource DME AR Collection Services!
Accurate and efficient DME medical billing is critical for keeping AR days as low as possible. A minor claim error can cause payments from payers to be delayed by weeks if not months. If your in-house DME medical billing is inefficient, consider outsourcing DME medical billing services.This is most likely the answer to all of your collection concerns. You can simply choose to outsource DME billing services to specialists who will handle the entire DME billing and AR collection Services, allowing you to focus on your patients without worrying about revenue. 24/7 Medical Billing Services professionals assist you in meeting your financial objectives by boosting your AR collections.
Contact 24/7 Medical Billing Services for DME AR Collection needs!