Optimizing Accounts Receivable Services Management Process

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Checkout here about our case study on accounts receivable services. Leveraging our years of experience in the industry, we helped our client to improve AR collections and created a strategy to avoid a recurrence in future.


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www.medbillingexperts.com Optimizing AR Management Process for a Renowned Billing Company Case Study The Client A renowned billing company based in California. Established in 2001 the company specializes in 70 medical specialities and has over 2000 employees in the US. Currently it partners with a variety of healthcare organizations in 40+ states. Challenge The client was losing out a major portion of its revenue to denials which were impacting its balance sheet severely. The client approached us for a solution to help them improve accounts receivable collections as well as leverage our experience in denial management to create a strategy to avoid a recurrence in future. Solution We started the project by understanding the root cause of the denials. For this we analysed three months of denial data through a root cause analysis method. Based on our analysis we executed the following: Identify what more than 120+ A/R age consisted of. If it was a bunch of uncollectable account receivables or one’s older than 6 months we made sure it was removed off the table. We also analysed account receivables for improper authorization or pre-certification and tried to get them retro-authorized. Insurances for which timely filing deadline were missed out we ensured immediate submission of the claims with proper documentation primary EOB perhaps chart notes etc.. For many cases we even got on the phone with the adjuster to sort the differences. We recommended an A/R aging that depended on the distribution of the financial classes of patients. Parallelly we suggested representation of the distribution in a way as in the below table that ensures that as the receivables age they should decline as a percentage of the A/R. Any change in the representation would mean a significant change in the way the practice is being handled. Company A www.medbillingexperts.com

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Company A www.medbillingexperts.com We suggested aging commercial insurance and self-pay separately and identifying how each one is performing. Prior to this the practice blended the two together in the aging process. As a result when the aged A/R showed a mass increase in the percentage of accounts over 120 days of age it was impossible to determine if this was because of self-pay commercial insurance accounts or both. Besides the above there were other reasons that were also affecting the financial condition of the practice. Primary among these were: Incorrect Information Insufficient Knowledge To eliminate these we recommended the inclusion of AR analysts in the team whose task would be to monitoring A/R payment ratio and A/R charge ration periodically besides educating the staff on insurance rejections and changes on insurance rules time-to-time. “A period of high claim denials posed a challenge for our medical billing company. During this time our team was not only struggling to keep new receivables current but also were failing to collect on the older AR. This is where MedBillingExperts came in. Their team of knowledgeable AR collection experts provided a booster shot to our AR department. They were able to collect on ‘newer’ as well as older amounts that would have not been cost-effective to do ourselves. Going with MedBillingExperts was one of our best outsourcing decisions.” -VP Collections Recommended Distribution of A/R by Age 0 5 10 15 20 25 30 35 40 45 50 Total A/R Not to Exceed Age of Accounts 0 to 30 days 31 to 60 days 61 to 90 days 91 to 120 days More than 120 days 30 20 15 10 5

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Company A www.medbillingexperts.com Results Our solution benefited the client in the following way: Three months into the project the percentage of denials showed a 30 drop. In the next 3 months it further reduced by 60. The backlog of denials started falling drastically month over month till they fell to a record low. The streamlined operations led to a substantial savings which translated into 40 increase in revenues within 6 months of implementation. Key Achievements Month Jul17 161412 95824 155898 257236 Aug17 Sep17 Charges Collections Total AR 90+ AR 187586 105615 161408 293202 177322 102166 161331 279488 17 90+ 19 21 31 Coll Rate 32 32 Since last 13 years MedBillingExperts has offered robust reliable and cost-effective healthcare back-office support services - ranging from revenue cycle management billing and coding to AR management denial management and claim adjudication - to physicians clinics care centers hospitals medical billing companies and insurance providers. It is our mission to obtain accurate complete and timely payment from all third-party payers and patients for our clients using highly trained staff proven billing methodologies effective control systems and state-of-the-art technology while adhering to the highest legal ethical moral and practical business standards in the industry. And it is this single-minded focus that has helped us capture a substantial market size of about 200+ physicians 120+ hospitals and 70+ medical billing companies in the US in no time. We are here today because of the following attributes: Medicare Coding and HIPAA compliant processes 500+ AAPC certified coders Service from 8 global delivery centers for time-bound delivery Competitive rates to ensure 40 savings in expenses 24X7 Outsourcing Facility Weekly AR report with reduction in CAPEX costs CONTACT US to know more about our AR management services.

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