While, as a physician, your natural inclination is to help people and maintain an exceptional level of care, you must also be concerned with your cash flow in an effort to continue doing what you do. Professional medical billing services can offer the optimization that puts cash flow on your side.
7 Tips For Effective Cash Flow Management
1. Quickly Address Denial Of Payment Causes
Denial of claims is one of the main reasons behind cash flow issues and while we all understand accidents happen, we also don’t stay open when the electric bill isn’t paid. It is absolutely imperative that a medical practice notes and addresses the reasons for an insurance company’s refusal of payment. It’s terrible when an accident happens, it’s worse when just a little attention to data means it doesn’t have to.
2. Prompt & Accurate Billing Of Patients
Delays at any point in the billing process can create costly lag. You want to make sure patients are billed as quickly as possible for everything not covered by insurance. The longer it takes to get your money the bigger the strain on your cash flow.
3. Build And Train Your Team With An Effective Collections Strategy
Part of maintaining positive cash flow is every member of your team understanding the collections process intimately and their role in the process. Set a policy and make sure your accounting and finance departments understand the gravity of failure to comply.
4.Clear And Transparent Accounts Receivable
Much like with collections, it is imperative that your practice maintains a clear picture of Accounts Receivable. Each stream of income needs to be clearly understood with insights into each of its corresponding collection mechanisms. Unless this process is clear and unambiguous, hitting revenue targets is unlikely.
5. Simplify Billing With An EHR
Eliminating errors and delays caused by paper systems is a must. Setting up an Electronic Health Records system improves overall efficiency which means you have better information in a more timely manner. This allows your practice to eliminate needless delays and speed up the rate of cash flow.
6. Make Paying As Easy As Possible
It might seem obvious but the easier you can make it for your patients to pay, the quicker you will get your money. Practically speaking, this means incorporating as many payment methods as possible: via text, email, an icon on your website, etc. It also means having payment plans to encourage paying as much as possible as quickly as possible. Predictability is a close second to speed when it comes to cash flow.
7. Claims End When They’re Paid
Claims can get lost or forgotten pretty easily in a fast-paced environment; don’t let this eat away at your cash flow. No matter how old a bill is, you need to make sure you track down what you are owed. You’re running a business not a charity