Top 4 Methods for Reducing Hospital Accounts Receivable (AR)

The financial health of a healthcare organization depends on a smooth revenue cycle. Physician compensation, overheads, research, new technology investments, and other operational functions are all handled by the healthcare revenue cycle. Increased Hospital Accounts Receivable (AR) days can be caused by revenue cycle process gaps.

  • Eligibility verification
  • Claims
  • Denial management

 Are just a few of the processes involved in the revenue cycle. Any inefficiency in the process would have an impact on the revenue cycle management as a whole, causing unnecessary collection and cash flow delays.

Hospital Accounts Receivable must be managed effectively to ensure the revenue cycle process runs smoothly. Streamlining the entire process necessitates a collaborative approach from all stakeholders, including doctors, care coordinators, and so on. Let's take a closer look at four key strategies for reducing AR days.

Front-end driven approach

By removing administrative tasks from patient care, a front-end driven approach to the healthcare revenue cycle improves clinician and patient experiences. This also helps with the collection.

When a patient is scheduled for a visit, the office staff begins by verifying eligibility, pre-authorization, and other procedures. Rather than working on this process in the back end, doing it upfront facilitates pre-payment, lowers collection costs, and significantly reduces bad debts.

Make the Most of Your Enterprise Data Warehouse

Utilize the capabilities of your Enterprise Data Warehouse to accelerate your healthcare revenue cycle process. Examine your current data status in terms of

  • Patient experience
  • Patient Satisfaction Index (PSI)
  • Future trends

You can even use bench-marking tools to compare your data to that of other healthcare facilities to analyze data and identify gaps and opportunities for improvement. Enterprise Data Warehouse analysis provides 360-degree insights in measures of:

  • Clinical
  • Financial
  • Patient satisfaction

Thus allowing you to investigate and resolve issues in Hospital AR.

Effective denial management program

The management of claim denials can make or break your revenue cycle process. While avoiding claim denials can help improve cash flow, claim rejections represent lost revenue. Preventing claim rejections can improve revenue collection significantly.

Approximately 12% to 18% of claims are denied, resulting in lost revenue opportunities. Using automation and AI-powered insights to analyze claim denials can assist you in identifying the root cause and, if necessary, resolving the Hospital AR issue.

Discuss RCM issues with your employees

When you notice that your collections are consistently being harmed, along with an increase in AR days, it's time to investigate and discuss the problem with your frontline staff. Your frontline staffs are the people who are directly involved in the process and are be best who can share their perspectives on the problem and suggest potential solutions to resolve it. Hospital AR workflows should be analyzed regularly and your workflow efficiency strategies should be discussed with your frontline staff.

Hence to conclude, with changing regulations and an evolving healthcare financial landscape, healthcare organizations must focus on billing and Hospital AR collections to maximize a healthcare business's efficiencies.

Healthcare facilities cannot afford to ignore revenue cycle issues. Hospitals must use artificial intelligence and analytics to identify gaps in the revenue cycle infrastructure and implement necessary changes, all while maintaining cash flow.


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  1. author
    27 Aug 2019
    Tomas Mandy

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    1. author
      27 Aug 2019
      Britney Millner

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  2. author
    27 Aug 2019
    Simon Downey

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