Accounts Receivable Self Assessment: Helpful Tips and Recommendations

 

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These are common problems related to accounts receivable management. Recommendations for improvement are provided.

Observation
Recommendation

Electronic claims are submitted once or twice per week.

Increase electronic claims submission to three or four times per week.

More than 20% of claims submitted are denied due to incomplete data or incorrect coding.

Determine the source of the problem. Improve accuracy of patient demographic information entered at check-in.
Conduct staff training related to problem areas.
Identify rejected claims, re-work them and resubmit filing within 30 days of denial.

There is a significant amount of A/R in the over 120 days aging category.

Develop a work plan and immediately focus attention to this area.
Analyze these accounts by patient and payer.
As appropriate, write off claims that are uncollectable or too small to justify pursuing (follow current practice policy and procedures).
Send claims to collections and remove from the A/R report (follow current practice policy and procedures).
Set goals to measure success.
Reward success.

There is lack of clarity on the part of staff regarding billing and collection procedures.

Ensure the practice has a current, and well defined policy and procedures manual for the business office. If no policy exists, assign a team (one person from each department involved in the billing process) to write the manual.
Conduct periodic staff training to review the policy and procedures.

Roles and responsibilities are not clear for all positions dealing with accounts receivable.

Develop or update job descriptions for each position involved with the accounts receivable process.

Patient demographic information and insurance coverage is not verified to be accurate at check-in.

Train front-desk staff on the importance of having accurate patient data.
If possible, verify information over the phone at the time the appointment is made.
Copy insurance cards at each visit. Remind patients to bring their card with them when appointments are confirmed.

The team involved with accounts receivable is not aware of the A/R status.

Utilize a monthly A/R aging report to communicate status by payer group.
Communicate planned activity to address current issues and involve team members in the activity.
Establish departmental goals for collection ratios and days sales outstanding.
Consider use of incentive plans as a means of rewarding outstanding performance.
Copyright 2002 The BSM Consulting Group