With the health care industry’s rising number of insurance denials, practice owners frequently stop pursuing claims that are of lower value so they can focus their resources on reconciling high-priced denials. In doing so, they are relinquishing payment for delivered services and are leaving significant funds on the table, often as a consequence of staffing and technology limitations.
The good news is that emerging automation and data mining technologies are making the recovery and management of accounts receivable (A/R) a more streamlined process. In some cases, automating A/R and reducing the amount of human responsibilities during revenue cycles has transformed how practices identify the causes of underpayments, denials and delayed payments.
For health care businesses seeking to improve cash flow and accelerate the time it takes to resolve insurance claims, it often is a viable solution to outsource A/R to specialists who can quickly and efficiently use automation. As software continues to become more intelligent and data mining becomes increasingly high-level, health care organizations can merge technology and staff specialization to finally overcome the challenges of A/R and fine-tune the dynamic between providers and patients.
Advantages of Automating A/R
Using automating technologies, practices can reap important benefits that will ease and simplify day-to-day operations. When organizations automate their A/R workflow, the amount of manual tasks is greatly reduced. Some advantages of A/R automation include:
- Reduces room for errors
- Increases the number of billings processed per staff person
- Creates opportunities for staff members to perform other tasks
- Allows a practice to see more patients without adding staff
With little human intervention, automation technologies can detect potential denials before practices file claims. This means fewer mistakes and more orderly payments by insurance companies. Benefits realized may include:
- Increase in cost savings
- Reduce hours spent manually researching claims
- Catch issues much earlier in the process
Additionally, automation decreases the costs associated with processing A/R. These savings will flow directly back into the practice along with increased productivity and reduced overhead. This can lead to:
- Improved customer service
- Reduce time to receive payment
- Enable staff to focus on more complex issues
As reimbursements continue to decline in the health care industry, automating A/R and other revenue cycle processes can assist medical practices in preserving cash flow, retaining more customers and painlessly navigating insurance claims.
Questions about how automation can improve efficiencies at your company? Contact your MarksNelson Smart Technology Professional at 816-743-7700 for a Digital Solutions Assessment and make the smart move forward.