If your practice takes longer than the needed time to receive payments, you are betting your profits on future collections. Though this looks comfortable over time (as you receive payment every month), you are actually not in the best spot. If revenue takes a month longer to reach you, fixing that gives you immediate cash equivalent to the entire revenue of a month. Imagine how you can use the extra cash in hand to invest into future profits. Cash collected late or not collected at all has a huge opportunity cost, one that commonly goes unnoticed.
How can practice management systems help you reduce your collection time?
Irrespective of whether a practice is accepting insurance, keeping accounts receivable (A/R) low is fundamental to running any profitable business. The use of modern practice management systems can fix critical gaps in implementing an effective revenue cycle management strategy.
Eligibility checks to reduce late & rejected payments
It is better to stem a problem at the source. If your production time was scheduled with priority to patients who are more likely to pay on time, you will not be facing a revenue cycle issue to begin with. The key here is to ensure you can do this eligibility check fast and before the patient checks in. A modern practice management system manages this process with simple one-click solutions.
Error free claims submission with just a single click
Information once collected is compiled into an error-free claim, ready to be sent for processing. Automated workflows ensure due process and leave little margin for error. This saves valuable time and effort while processing claims, leading to a predictable revenue cycle. When executed well, this can eliminate the need for clearing houses.
Make informed choices in treatment planning
Being able to choose the right plan for a patient, based on his insurance and payment capability, help reduce confusion while billing. The patient is presented with the clear choices he can make improving patient experience and ensuring your patient and you are making the best available choice.
Automated ERA postings for faster and better accounting
ERA postings have always been a source of constant headache to the practice. The latest practice management systems enable you to completely automate this, making your accounting and collections more streamlined. Problems and discrepancies are detected early and corrective measures can be taken pre-emptively.
Payment reminders to ensure faster collection
As a practice owner, you would have seen your collections increase when you actively follow up on receivables. Many times all it takes is a timely reminder to get a payment. These are the low hanging fruits in collection. Such follow-ups should be consistent and timely to be able to work. Automation features in modern practice management solutions ensure your collection effort is running consistently and efficiently.
Automation and process streamlining
Most of the financial processes currently utilized have a lot of redundancies that do not need active human participation. These systems can be converted into automated workflows making processing not just faster, but also cheaper and more accurate. Choose a practice management system that is serious about automation and constantly improves their capability in this space.
Billing, coding and collections are complex, yet crucial pieces for maximizing cash-flow and profitability. Choose a system that ensures optimal functioning of your revenue cycle with the least possible effort. Look for eligibility checks, treatment planner, billing, claims processing, ERA postings as necessary features in your practice management system. Choose a system that allows and is keen to expand on its automation abilities. Automation of such tasks is the future.