9 Strategies to improve your medical practices and hospitals cash flow

 Tom Jenkins Billing & Collections, Coding, Medical Billing

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The financial management of a health system is greatly enhanced when reporting and monitoring tools are actively deployed. The transparent accounting reports generated by the tools provide the management insight into the financial health of the organization. 

These financial reports monitor important transactions, enabling the administration to keep an eye on account receivables. To grow and flourish, the health system has to maintain high standards of accounting, for which reporting and monitoring financial activity plays an important role.

1. Analytics Reports Facilitate Comparison of Performances

An analytical report generated by a reporting tool, for example, facilitates the comparison of performances over some time. It leverages the health system to eliminate any ambiguity noticed in the report by the stakeholders.  

There are variants of reporting and monitoring tools, the end-user can not only be for monitoring financial performances, but for monitoring workflow as well.  An automated tool can have multiple capabilities of reporting and monitoring clinical aspects, financial, and workflow patterns of a health system.

2. Reporting Tools Facilitate Better Coordination Between Different Stakeholders

Let’s assume if a health system chooses to partner with a remote vendor company for the management of its AR operations. With 3000 to 4000 miles separating the two entities, how will it be possible for the AR workflow to be operational and monitored? 

This is possible only through a cloud-based SaaS-supported tool. It enables the health system to log in and analyze data in real-time, while simultaneously monitoring all aspects of the workflow.   

The design of the tool should be such that when the administrators of the health system log in, all the workflow data should be visible to them on a single screen, making it easier for them to collaborate with various sections of the facility without a struggle. 

This makes it possible to connect and communicate with the staff either remote or in-house, without any difficulty. 

3. Streamlines Communication Between Remote and Inhouse Staff

Better communication setup between remote and inhouse staff streamlines the workflow, it becomes easier to respond to any tickets that have been opened by either party and eliminate the possibilities of documents getting misplaced or emails not getting a response. 

The tool must have a ‘ticketing system’ to facilitate the remote billers to generate a query for any claim information needed from the provider or alert the health system staff for any missing documentation or data. 

An event scheduler must also be included in the tool, it enables the administrators of the health system to schedule an event in advance for any important notifications that might have to be given to the remote billers.

4. Assigning Tasks to Remote Billing Teams

Likewise, the administration office of the health system must have the facility of assigning tasks to the remote billers or AR team directly through a task management system available within the tool. 

Another important feature the tool must have is the reporting capabilities that will allow the health system administrators to track the performance of the billing team either in-house or remote, view the productivity metrics and monitor cycle times, all on a single screen.

An audit trail of every action performed and every task assigned is also an essential feature that the tool must have. It facilitates administrators to monitor the follow-up actions of the revenue cycle management staff.

5. Financial Data Reporting

How important is it for a health system to monitor every payment it receives for services rendered? It is one of the key metrics to have in an AR management tool, it facilitates the system to monitor and sustain the cash flow. These metrics enable the health system to perform a retrospective analysis for the future.

6. Production Tracking

This is one more important feature the tool must-have for enabling the administrators to monitor the production tracking of every activity performed by the remote and inhouse staff associated with revenue cycle management. 

7. AR Callers Report

The efficacy of AR calling is one of the most crucial aspects of Account Receivable Management, regardless of whether a  health system has a remote staff or inhouse staff involved in AR calling. An AR callers report is important to monitor the progress of AR calls to insurance companies or following-up on pending claims. It also enables the health system to track the volume of calls initiated by AR callers on a day-to-day basis. 

8. Denials Management Report

This report monitors the number of denials processed each day by the denial management team. Any shortfalls in productivity will enable the health system to optimize productivity by restructuring the denial management program.

9. AR Ageing Report

Any claims remaining unpaid beyond 90 days should be a cause for concern because these claims have the potential of breaching the timely filing deadlines of insurance companies.

This report has great value in terms of providing the health system the means to measure the financial health of their practice. It provides the administrator’s insight into the performance of the billing department, both remote as well as in-house. In addition to the ageing report, if the reporting tool has the capability of generating Insurance Payment Trends and Insurance Collection Reports, it provides the health system a more precise and informative view of A/R status.

An ageing report segments the claims based on the number of days they have been in receivable status or have remained unpaid. The standard time taken by insurance companies to reimburse claims is about a month. This report enables the health system to identify issues, and initiate preventive measures that are causing delays for the payments to be reimbursed. This report also alerts the health system of any claims that remain unpaid beyond 45 days, so that follow-up measures can be quickly initiated.

Concluding, the reporting and monitoring tools are critical for obtaining accurate information for the benefit of the health system. It leverages the system to discover fresh insights to enhance performances and better financial outcomes. Get the financial report for your practice.

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Over 12 years of experience as an RCM specialist. I have hands-on experience in most parts of the RCM Cycle. Currently designated as Manager – Operations in BillingParadise based out in Diamond Bar, CA. We offer Billing services and Healthcare IT solutions which in turn will improve the cash inflow of the Hospitals and Clinics.

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