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Everything you need to know about AR Recovery in Revenue Cycle Billing

Everything you need to know about AR Recovery in Revenue Cycle Billing

Are the denials and rejections spiraling beyond your control? It’s probably time to review your AR recovery strategy to ensure effective revenue cycle bill. A successful AR recovery strategy could result in faster payments and overall higher financial performance. However, it’s crucial to be aware of how to begin and where to begin? Healthcare facilities lose a significant amount of revenue because of delays and unpaid claims for Revenue Cycle Billing. This is why missed revenues can be made up through reworking the process and appealing to insurance companies. This method of reviewing denials to an insurance company until reimbursement is known as AR recovery.

The healthcare industry is becoming increasingly complicated for professionals. With the increasing costs of deductibles and the tighter reimbursements for payers and reimbursements, the coming year is expected to be more difficult for healthcare professionals who must provide care to patients and increase their revenue collections. Let’s look deeper at the ways AR recovery can aid in improving revenues cycle billing.

Aging Report of Account Receivable in Revenue Cycle Billing

  • The report on aging of accounts receivables typically aids in identifying denials based on the number of days of outstanding payment.
  • The longer the claims stay for the older group less likely are they to receive reimbursements. This is the reason for the necessity to have AR reimbursement in billing revenue cycles.
  • An efficient AR follow-up group and an efficient denial management procedure can be used to rework on appeals for reimbursement, with regular follow-up until the reimbursement is made and the claim has been closed with success.

Tracking and analyzing Your Medical Billing Reports

  • Monitoring all claims to identify if the payment occurred or was delayed or denied aids in analyzing collection percentage and assists in identifying the claims that need to be reviewed through Accounts Receivable. Accounts Receivable department.
  • The efficiency of revenue cycle billing is attained through the implementation of a monthly report system that determines the rate of growth in your practice’s revenue.

Metric-Driven Goals to Enhance the Financial System

  • Every practice in healthcare is bound by its own objectives and goals that they have to meet.
  • Financial goals serve as crucial barometers that help keep the billing process for revenue cycle productive and up-to-date.
  • If you focus on increasing patient visits and processing more claims per month will not help you achieve your goals in terms of financials. The ultimate goal is reached when your practice is able to maximize collection.
  • It’s also important to verify each dollar your health care practice has gotten from the insurance provider.

Achieving an Effective Follow-up of AR in Revenue Cycle Billing

  • In no doubt that an efficient AR follow-up program can monitor the status of all claims that are denied or not paid and evaluate them based on the write-off or adjustment policy.
  • The claims not paid in accordance with the contract rate are traced and followed-up in accordance with the appeal process and deadline for filing by the insurer.

The Importance of EFTs and ERAs

  • The first thing to do is Christina insists that businesses “absolutely must look at Electronic Funds Transfer (EFT) and Electronic Remittance Advice (ERA) enrollments for all payers when possible.”
  • To begin the above procedure, first find out if there are any paper payments or payments received, and then decide whether EFT or ERA enrollments are accessible.
  • These processes speed up the processing of payment and also make it easier to eliminate mistakes in posting.
  • The majority of insurance companies do not permit EFT as well as ERA enrollments. This means that you must look at ERAs to view the trending information of underpayments, payments and denials.

Find out the root of the denials

  • A key element of an AR recovery plan is to find the root cause of denials. When working with insurance companies’ claims denials it’s essential to recognize patterns in the payer and the root causes of the declines and formulate strategies to prevent the occurrence of related denials.
  • Christina is also clear about the importance of knowing how the payment processor’s CAS Codes. If insurance companies utilize similar CAS Codes all over the world, not all of them make use of CAS Codes exactly the same manner.
  • In the same way it’s important to remember that there might be a difference in how you interpret the CAS Code is interpreted.
  • For instance, Blue Cross Blue Shield might use CAS Code 197 (authorization required) to deny claims not processed due to credentialing-related issues.
  • Contrary to this smaller insurance companies employ CAS Code 197 as pre-certification or authorization, or notification that is not present in its most literal sense.
  • The CAS Codes are interpreted differently. Denials should not be determined only by the definitions from the CAS Code.
  • Instead, you should review the CAS Codes for each the payer group and then connect CAS Codes according to your knowledge of the particular insurance provider that uses these codes.

Claims that do not receive a response to revenue cycle billing

  • Claimants without a proper response is among the biggest problems because the people who are in charge of the follow-up for claims tend to make assumptions.
  • It certainly gives you more time, and make you believe that a response is close by. It’s not the same forever. Any response you receive could be the most negative response you can get.
  • In determining the time, the time an insurance company takes to receive and take care of a claim, along with state-specific payment and processing laws that could greatly benefit your AR recovery strategy for the revenue cycle of billing.

Engage Patients When Necessary

  • Another method for handling account receivables is to contact your patients whenever they are needed and as quickly as possible.
  • Patient outreach can include the creation of letters to your patients that ask for assistance with the process of settling claims.
  • The letter should address how benefits are coordinated, any delays when it comes to processing claims by insurance, the demographic information required by insurance and the reason the reasons why insurance is delaying or not processing claims.
  • If you contact the patient, you can ask for assistance or details, and let the patient know of the steps you’ve made to ensure that their claim is settled.
  • Giving this information to patients can help build trust and ensure that you’re doing your best to manage it in conjunction with an insurance firm.
  • Patients are generally willing to assist whenever there is a problem regarding the company throughout the process of processing claims.

Outsourcing is the most effective option for an efficient revenue cycle billing that includes an extremely skilled AR follow-up staff. They are able to manage AR recovery in a stage that the revenue cycle bill is more flexible and efficient.


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