Innovative Techniques for Better Hospital Accounts Receivable Management

Hospital Accounts Receivable

The heartbeat of a Hospital’s financial health is revenue cycle operations, and the faster they are paid, the better. Debts in Hospital accounts receivable (AR) can baffle an institution’s operations and hurt the bottom line due to the lack of revenue. Fortunately, the issue is being taken seriously by healthcare finance executives.

According to studies, one out of every four small businesses has trouble managing their Hospital AR because of clients who:

  • Either underpays them
  • Pay after the terms have expired
  • Simply unable to pay due to financial hardships

These situations can be avoided by taking a few simple steps to improve your Hospital accounts receivable management:

Create a standardized follow-up procedure

A lot of debt collection is done based on previous experience. If your industry is known for its lax attitude toward payment collection, your clients are likely to delay their payments. Furthermore, some hospitals lack a debt collection system and rely solely on the goodwill of their patients.

 One solution is to email the invoice 7 days before the payment is due, and then again 2-3 days before the payment is due. It sends a clear message to the client that you are serious about outstanding Hospital Accounts Receivable and that you want them to follow company policies.

Be proactive in your approach

When it comes to debt collection, having a system in place isn’t enough. Being proactive entails ensuring that the system is being followed correctly. Even before that, it’s critical to ensure that everyone is aware of the SOPs and is working together to resolve outstanding accounts receivables. Even if you have a system in place, making phone calls to creditors should be handled by a dedicated resource. When it comes to collecting payments, nothing beats a good phone call.

Streamline the Procedure

Using automated software to manage your bookkeeping needs can be extremely beneficial to your company. There are a plethora of accounting software options available for managing everything from sales invoices to income statements and balance sheets.

Having all of your customers’ information in one place allows you to send and receive critical information at predetermined times, as well as improve the efficiency of outstanding accounts receivables, giving your company a professional image. In this case, automated emails come in handy

Hence to conclude, Billing and collections are one of the most important aspects of running a healthcare business, especially in today’s ever-changing financial environment. A declining AR turnover rate and a deteriorating AR aging schedule are wreaking havoc on cash-strapped health systems. Managing your Hospital  Accounts Receivable is a time-consuming task for a reason. No organization can afford to let go of the reins and expect to grow.