Ways to Boost Your Practice Cash Flow
Due to the latest policy compliance or any government program, you may face scrunched cash flow leading to fewer payments. The physicians also face challenges due to the new MACRA quality payments program. It focuses on reporting the quality metrics and collections. There is a need to consider the hindrances of maximum cash flow if you are not meeting your revenue targets.
Continuous cash flow practice depends on many factors that influence the performance of methods. Full practice cash flow is possible only due to the optimized medical billing. Physicians should be concerned about the practice cash flow and delivery practice. For a streamlined billing process, accurate financial dealing with the patients is the key to deciding the overall cash flow. You might be looking for how to improve your cash flow along with your practice. You have to work on different areas to enhance your revenue.
- The most significant component for a smooth and fruitful procedure is to align your billing with the latest updates. Otherwise, you will never meet your targets.
- Accounts receivable is the amount that is collected from a patient. If accounts receivables A/R are well-managed, it is a sign of stability in the practice’s cash flow.
- A well-defined mechanism for collecting the payments from the patients will help maintain the maximum supply of fees. If the collection process is not managed well, you will never achieve your revenue targets.
A well-organized plan is required to improve your collection revenue. Here are a few suggestions that can improve your cash flow if you follow them properly
Check the insurance status before service:
If it is possible except that of the emergency conditions, your staff should check the insurance status of each patient. With the help of software tools, your team can get the data via an electronic health record system through automated processes. Suppose your patient asks about the appointment or for medication. Inform your patient that they will update the insurance data so that you can keep up-to-date records.
A Clear policy
Make a mind map with trained and qualified staff. A well-planned procedure will be helpful to increase the cash flow. Make sure that your team is competent, and it is beneficial to solve the nuts and bolts of the collection procedure. Make sure that your Finance Department is adhering to the policies. A well-structured team of medical billing and accounts is always helpful to meet your revenue goals.
Try to send patients invoices on time:
It depends on the expertise of your staff and how they handle the invoices. Sometimes an employee can delay the procedure by sitting on invoices to assemble them for his convenience. It is the lack of efficiency. Your staff might be struggling to keep up with these essential billing tasks; however, modern medical Office software has made the procedure serviceable to generate the correct invoices.
Request payment to smoother the billing procedure:
It is justified to ask about the payment when the patient is in front of your team. Late payments cause an increase in overall cost. It is essential to take the amount from your patients as soon as possible on time. Check the authorized services of patients thoroughly and charge them accurately if any insurance company does not cover them. This practice will save your money and time as you are not putting extra effort into a succession of invoices and reminders. Your team will not spare time to ask for late payments; again and again, it would be beneficial to collect revenue.
Denial of payments:
One of the significant reasons for local action of cash is the denials of payments. You have to keep an eye on all these aspects of why the insurance company is rejecting the claim. It may happen due to wrong documentation or if an expert has mishandled it. Try to avoid all of these factors that cause hindrance for the collection in the future.
Align your billing with the practice management system:
Your billing procedure makes payments much easier if you follow an integrated practice management system. Your front desk should check for the outstanding bills on patients’ arrival. They can communicate it to a patient on arrival. An efficient awareness of the exceptional accounts is only possible if your billing is put together with your practice management system.
Inform about your credit policy:
Before your services, explain clear policies to your staff so that they can inform your patients on time. Your patients will never make an excuse if you notify them about your policies. So they have a clear mind of what will happen if the patient misses an appointment or doesn’t bother to inform them about the cancellation of the meeting. You should also indicate how much interest they have to pay when making late payments.
Keep the record of the old claims:
Always keep a record of old bills even if it is too old or you forgot to collect the amount. By following the track, you can receive money at any point, even if it is a matter of a long time ago.
Numerous payment plans and options:
Different payment methods will make it easier for the patients to pay quickly. It would be helpful to enhance your collection. Accept all the types of payments from your patients through a credit card, check, bank draft, or send the reminder through the patient portal to pay for the undue bills. Payment follow-ups, reminders, and the availability of multiple channels are always helpful to collect payment.
Be aware of your legal protection:
Suppose the patient has not made his payment even after the extension period, in some cases. You would need to take legal action. You must have complete information about the legal procedure for recovering the debts in the right way so that your patient will be eligible to pay a fee along with a fine.
After the pandemic, most medical practitioners seek to boost their revenue flow to improve collection. They are following the best practices for collecting the payments from patients, and this article will be helpful to upgrade the graph of their revenue collection.