For any successful business, steady cash flow is the most important element. Likewise, in the healthcare industry, maintaining a steady cash flow is even more important.
If there is not enough cash flow, medical practices will not be able to purchase new equipment that will be beneficial to them for delivering advanced healthcare, and also they will not attract or retain qualified medical practitioners who can treat patients. This will lead to a low in customer satisfaction, decrease in new patients and finally, more cash flow woes.
In this blog, we are going to see 5 simple steps that will help normalize your healthcare RCM cash flow.
Keep the billing process going nonstop
Consistent service volume is important when your billing office is doing well. If there is a small interruption in the charge volume, then there will be a negative effect on your cash flow in a few short weeks. Many providers work hard but get only a small reward in the form of increased remittance.
Do billing every day
After uneven service volume, uneven billing is another way your cash flow will be negatively impacted. To stabilize your healthcare revenue cycle, it is best to do your billing every day.
Follow up on unpaid claims
It is easy to get a claim out the door, but following up of every claim is vital. The only difference between covering costs and being successful is providing good follow-ups and denial management system. Outsourcing follow up services will improve your stability of cash flow.
Keep an eye on your KPIs
Always stay on top of your KPIs by knowing how long it takes for a service to turn into a claim and a claim into cash. Knowing your days outstanding and finding out your successful claim acceptance rate will be beneficial for you. Measuring your A/R will also enable you to pay great dividends.
Simplify the collection process
It is important to simplify the collection process to maximize revenue and decrease the number of days in A/R, providers can collect from a patient after a procedure, rather than at the time of service. Some ways through which providers can improve collection communication are clearly indicating what is due, giving a summary of services next to the status of the insurance claim and offering multiple payment options like online and phone bill payments.