By Leo John
Like the quote says, “One cannot pour from an empty cup”, we should have something in our hands to give others, right? Likewise, the Revenue Cycle Management of a healthcare clinic is as essential as their services to this world. There are many RCM agencies that help healthcare providers manage their revenue and increase their cash flow. However, the biggest curse of the Revenue Cycle Management process is the payments that add to the Accounts Receivable account.
Even well-experienced and expert RCM companies struggle to tackle the issues related to Accounts Receivable. For MHRCM experts, it is as simple as ABC. Our new blog is going to measure the steps to improve Accounts Receivable collection in 2024.
What is Accounts Receivable?
The money that customers or patients have not paid for the products or services rendered by a businessperson or healthcare provider comes under Accounts Receivable Management (AR). These Accounts Receivable will be noted on the balance sheet as a current asset. It has a certain time limit, like a few days or a year, to be paid back.
How can you Improve your Accounts Receivable Process?
Here are seven steps to improve your Accounts Receivable process:
Systemize Invoicing and Payment
Giving customers or patients a clear and easy way to pay can help you receive late payments quicker. You can use electronic billing and payment options like credit cards, ACH, and so on. These easy electronic transactions can streamline the payment process, prevent errors, and encourage your patients to pay on time.
Construct a New Collection Strategy
Constructing a new collection strategy is needed to get paid quicker. To build a new perfect collection strategy, you should first focus on the big overdue accounts and then refine the old processes. Meanwhile, you should also implement processes that can prevent overdue payments from happening again.
Provide a Quality Customer Experience
To get paid quicker, you should maintain a friendly relationship with your customers, right? Start directly communicating with your customers to understand their challenges with payments. For instance, if there is any problem with the billing process, you might not know it without proper communication, and it will remain unresolved until you find it yourself. So, to provide a better customer experience, you should communicate with them frequently and resolve the issues. These frequent communications can help you improve your billing process and reduce overdue payments effectively.
Encourage Communication Among Teams
Collaboration and communication play a vital role in optimizing your AR collection process. Connect with all the teams that directly deal with your customers to get a clear picture of their experience with your products, services, and payment procedures.
Organize your Collection Process
Organize your collection process by segmenting your clients based on the following:
- Easy to collect
- Difficult to collect
Provide Discounts and Payment Installments
You can offer early-payment discounts and offers, as it will encourage the clients to pay their overdue payments sooner. This helps you get paid quickly without time-consuming collection processes and can help you avoid late payments. For instance, think this way: if you haven’t offered discounts for overdue payments, they will remain unpaid forever, which financially impacts your business. However, if you offer a discount, it will get you paid and result in less financial loss for your clinic.
Utilize the Services of an Expert Collection Agency like MHRCM
Healthcare providers or businesspeople should not have the burden to collect the Accounts Receivable, as they have other primary functions and duties to carry out. So, it is advisable to outsource your RCM to an expert company to avoid this kind of stress and tension in your service or business.
MHRCM has an expert AR team that is adept and skilled in the area. To find out more, connect with our experts and outsource your Revenue Cycle Management today.
Implement the Latest Technologies in your Accounts Receivable Process
Here are a few modern technologies that can change your Accounts Receivable process for good:
AI Automation
AI automation in Accounts Receivable can reduce manual workloads and errors. It can carry out repetitive tasks and makes it easy for the staff to focus on more important activities like increasing customer engagement and collecting overdue payments. AI can use the data to send customized and personalized reminders for your customers or patients to pay the overdue amount.
Digital Invoicing and E-Payment Solutions
Your business or healthcare clinic’s cash flow can be increased by minimizing the time gap between invoicing and payment. The best way to do it is through digital invoicing and the e-payment process. Digital invoicing helps businesspeople send emails within no time and increases the chance of clients’ payment being received on time. Integrating e-payment options can also increase the chances of quick payment from the client’s or patient’s side.
Blockchain Technology
Blockchain can offer secured ledger systems that cannot be hacked even by professional hackers. This blockchain security offers patients or clients a sense of satisfaction and restfulness, as they know their payment details cannot be hacked by anyone. Every payment detail will be stored in multiple locations, which makes deleting or modifying the detail impossible and increases the level of transparency between businesses and their clients.
Outsource your RCM to MHRCM
Our expert team can ensure your patients’ Medical Billing Services are accurately filed and get you paid in a timely manner. Our services include various specialties and features that can effectively increase your healthcare clinic’s revenue and cash flow.
Here are a Few Strategies that we Follow in our Accounts Receivable Service Process:
- Using online payment options
- Using the right KPIs
- Following precise billing methods
- Setting up automations
- Collaborating with various teams
Conclusion
Applying modern technologies to the Accounts Receivable process and outsourcing it to an expert RCM like MHRCM is the best way to receive payments on time and avoid overdue payments from your customers or patients.
Frequently Asked Questions
What are the Benefits of Outsourcing my Healthcare Clinic’s RCM to Expert RCM Service Providers?
Here is the list of benefits that your healthcare clinic can get from outsourcing:
- Increased efficiency
- Focus on patient care
- Timely and improved reimbursements
- Improved payments
- Guaranteed quality output
Why is an Effective Accounts Receivable Process Essential to a Healthcare Provider?
Though healthcare providers serve their patients without expecting anything in return, financial stability is as essential as their exceptional services. When a payment stays in Accounts Receivable for more days, it can decrease the probability of payment and affect the cash flow of the clinic. That is why it is essential for healthcare providers to follow a well-strategized and effective Accounts Receivable strategy or process.
Related Resource
About the Author
