Take These Steps to Reduce Aged Receivables

Aged receivables are inevitable in any practice; however, too many of them can put your livelihood in jeopardy. Fortunately, keeping up with past-due accounts is easy when you keep the following things in mind.

Evaluate Payors

Evaluate the different insurance companies you deal with on a regular basis and try to determine what their timeline for payment is. Doing so will help you identify companies that might seem to take longer than others to resolve invoices. Once you have this information, you can then try to determine if there are internal conditions that might be delaying payment.

Review your medical billing and coding procedures to see if there are areas where you could make changes. If you are unsure about anything, speak with an insurance company representative and ask what you could do differently. Keep in mind that some insurance companies are known for being slower to pay than others, in which case there may be little you can do to speed things up.

Develop Procedures

Now that you know which companies are most problematic, you can then come up with some policies and procedures for handling aged receivables. At a minimum, you should establish guidelines for reviewing accounts receivable so that you can follow up on aged claims as quickly as possible. The longer you wait to seek payment, the greater the odds are that you will never recover your money.

Your internal procedures should also include measures to ensure accurate medical billing and coding. Some things you should consider include:

  • Providing ongoing training to ensure personnel are up-to-date with the latest medical codes.
  • Having more than one person review problematic claims.
  • Ensuring you have accurate demographic and insurance information on each patient.
  • Prioritizing claims so that you spend more time pursuing more expensive ones.

Obtaining Payment from Individuals

Higher copays and deductibles now mean that many patients must now pay out of pocket. As such, you could find that a good number of your aged receivables are from individual payees. Many times, this is caused by confusion over what the patient is responsible for, but in other instances, the amount is simply unmanageable. For this reason, you should have a payment plan in place that will accommodate the needs of those with inadequate coverage.

Many practices are also reinforcing the idea of paying for services at the time they are rendered. While this has been a longstanding rule in many physicians’ offices, it was not always enforced. You may need to implement such a policy if you have a high number of self-pay patients, or financing options to help people pay for their portion of medical expenses up front.

The very best way to keep up with aged receivables is to prevent them in the first place. Our accounts receivable guarantee promises that 85% of your charges will be resolved within 60 days. We also guarantee a 99% accuracy rate when performing medical billing and coding, something that will greatly reduce your number of past-due accounts. Want to know more? If so, please contact us.