Finance, Loans & Insurance
Elucidating On The Process Of Accounts Receivable Management by Receivables Performance Management Reviews
Accounts receivable management is the ability of keeping track of how much credit the company has given its consumers, and when the company can anticipate it back. Generally these involve an amount that a consumer owes to the company regarding the sale of any service or product. Doctors provide patients with the best care achievable and expect to be paid for their services from the patients and insurance company. The healthcare insurance system works in an inquisitive way where the provider delivers service and is re-imbursed at a much later period.
Whether one likes it or not, the insurance model is here to stay and it is very important for both small providers like offices, doctors and surgeon groups and large providers like big hospitals to carefully follow up on payments that are due. The accounts receivable management has developed in to the most noteworthy department in these organizations as they help in recovering the money from insurance companies and patients and facilitate to keep the business running.
The undertaking of accounts receivable management has evolved from a simple departmental activity to a dedicated skill centre by itself and requires experts so that doctors can concentrate on delivering the best care to their patients. This activity has become an integral and important part of the overall billing services that are provided by medical billing companies. Receivables Performance Management Reviews states that the process of accounts receivable proceedings is preceded by verification, charge entry, and claim posting. The procedure of entering the charge codes into the healthcare claim sheet is known as charge entry. This entails determining the diagnosis codes and procedure codes based on the treatment performed by the doctor.
There are particular rules defined by the insurance companies on what constitutes a legitimate claim and there are hundreds of rules some simple and others multifarious to determine the legitimacy of a claim. The audit team usually reviews the claim founded on the rules and approves the claim for acquiescence. This is a very significant step as this considerably lowers the risk of claim denials. The claims are then provided to the insurance company for processing. The insurance company processes the claim and sends a compensation payment to the billing company but the response time is changeable and therefore the necessity of a special accounts receivable team. The AR team takes over the claim and follows up with the insurance company for disbursement.
As stated in Receivables Performance Management Reviews, the AR team analyzes the claim for partial payments, denials and non-payments and if the claim has been filed wrongly, the claim is re-submitted and corrected. The AR team develops a constant communication mechanism with the insurance company, patient and the medical office and meticulously follows up to ensure quick and complete payment.
In conclusion, the accounts receivable management is the most significant service provided by medical billing companies and the efficiency of this team will settle on the financial health of the billing company as well as the medicinal practice.