Accounts Receivable Service for Providers

Improve Your
Accounts Receivable (AR) Process for
Better Financial Health

Healthcare organizations often lose about 15% of their yearly revenue because of poor accounts receivable. This shows how important it is to handle AR properly. While managing AR can be tricky, it is essential for keeping your practice financially stable and running smoothly. We offer a well-managed AR system, including billing, which plays a big role in your practice's overall financial health and efficiency. 

What is Healthcare
Accounts Receivable ?

Accounts receivable (AR) in healthcare RCM is about tracking and collecting payments from insurance companies and patients for services provided by healthcare providers. When payments are delayed or not received on time, it’s called aging AR, which can harm the financial health of a practice. Accounts receivable service covers the whole process, from checking insurance coverage and submitting claims to following up on unpaid claims, handling denials, and collecting patient balances. 

Challenges in Healthcare AR Processes

There are several challenges that can increase the days in AR.

Delays in Claim Submission

Late or incorrect claim submissions can lead to payment delays.

Insurance Verification Issues

Incorrect or incomplete insurance information can result in denials or delays in claims processing.

Coding and Data Entry Errors

Mistakes in coding or data entry can cause claims to be rejected or delayed.

Rising Denial Rates

The increasing complexity of claim denials can significantly impact cash flow if not managed efficiently.

Credentialing and Contracting Delays

Delays in credentialing or updating contracts with insurance providers can result in payment issues.

The Importance of Healthcare
Accounts Receivable

Effective AR in healthcare is vital for:

Consistent Cash Flow

Ensuring timely payments allows your practice to cover operational costs, reinvest in resources, and focus on patient care.

Operational Efficiency

Streamlined AR processes reduce administrative overhead, enabling your team to focus on more important tasks, such as patient care.

Building Strong Patient Relationships

Clear, consistent communication with patients regarding their financial responsibilities fosters trust and ensures greater patient satisfaction.

Minimizing Bad Debt

Proactive collection efforts help prevent long-overdue accounts from becoming bad debt, preserving your revenue.

Healthcare Accounts Receivable Benchmarks

Maintaining healthy AR involves tracking key metrics to gauge the effectiveness of your revenue cycle. Key benchmarks to monitor include:

Average Days in AR

This metric tracks the average time it takes for your practice to receive payment after services are rendered. Industry standards recommend keeping this under 35 days for optimal cash flow.

5-10% Net Collections Increase

Proven strategies that boost your bottom line and ensure financial growth.

Dedicated Follow-Up

Proactive management of every claim issue to recover lost revenue quickly and efficiently.

No Hidden Fees

ransparent pricing so you can focus on your practice with peace of mind.

A Few AR Terms You Should Know

Maintaining healthy AR involves tracking key metrics to gauge the effectiveness of your revenue cycle. Key benchmarks to monitor include:

AR Days

The average number of days it takes to collect payment from the date of service. Calculating this helps identify any delays in the collection process.

Follow-Up in Medical Billing

Regular follow-ups with patients and insurance companies are critical for reducing overdue accounts and speeding up the payment cycle.

Aged Accounts

Accounts that remain unpaid for an extended period, often classified into different buckets (e.g., 1-30 days, 31-60 days, etc.) to prioritize collection efforts.

Collection Rate

The percentage of billed services successfully collected within a specific period. A higher collection rate reflects a more efficient AR process.

Our Achievements with Healthcare Organizations

Invoices processed/FTE/month – 1.4K to 1.6K

AR follow-ups/FTE/day – 60 to 65

Denials handled/FTE/day – 45 to 50

Average claim dollar value – $400 to $450

Minimum first-pass rate – 95%

Percentage of High dollar claims processed/month – 42%

Small to medium dollar-value claims processed – 67%

78% lower cost-to-collect

92% growth in collections

25-30% AR reduction in 1 month

<1% write-offs

Average AR collections/month – $300 to 350 million

Our success in healthcare AR has improved cash flow, reduced administrative work, and increased revenue collection. 

How Panacea Healthcare Solutions Can Enhance Your AR Processes

Our team at Panacea Healthcare Solutions offers end-to-end AR services to optimize your revenue cycle and improve cash flow: 

Comprehensive AR Services

From claim submission to final payment collection, we handle the entire AR process to reduce your practice’s administrative burden and improve collection rates.
Workflow for Florida Healthcare

Data-Driven Insights

We use advanced analytics to identify inefficiencies and areas for improvement, helping you optimize your AR cycle.

Patient Engagement

Through clear communication and regular reminders, we encourage timely payments and help maintain positive patient relationships.

Seamless Technology Integration

We integrate the latest billing software to automate processes, providing real-time updates and improving operational efficiency.

Strategies to Improve Your Healthcare AR

At Panacea Healthcare Solutions, we implement the following strategies to help you optimize your AR processes:

Streamlined Billing Systems

We leverage technology to automate claim submissions, track outstanding balances, and reduce errors, ensuring faster and more accurate billing.

Standardized Processes

By establishing a standardized workflow for billing, collections, and follow-ups, we ensure that all team members follow best practices for improved efficiency.

Proactive Follow-Up

Regular follow-ups with both patients and insurers to ensure timely payment and resolve issues quickly.

AR Aging Reports

Monitoring AR aging reports on a regular basis helps identify trends in payment delays, claim denials, and areas that require immediate attention.

Patient Education

Providing clear, upfront communication regarding financial responsibilities helps prevent confusion and promotes timely payment.

Insurance Verification

Thoroughly verifying insurance coverage before services are rendered helps minimize the risk of claim denials.

Effective Denial Handling

We help develop a systematic approach to address claim denials, ensuring that your practice recovers as much revenue as possible.

Why Outsource AR to Panacea Healthcare Solutions?

Lower Operational Costs

Cut payroll and administrative expenses by outsourcing your AR processes to our experienced team.

Faster Payments

Our efficient processes lower AR days and ensure timely collections, improving your practice’s cash flow.

Experienced Specialists

Gain access to a team of skilled AR professionals without the need for training or recruitment.

No Additional Infrastructure

Partnering with us eliminates the need for extra office space or equipment, saving you valuable resources.

Improved Collection Rates

Our strategies have proven to improve collection effectiveness, driving higher revenue realization and stronger financial health.

Contact Panacea Healthcare Solutions today to schedule a consultation and let us help streamline your healthcare AR processes for greater financial success. 

Our Other Healthcare Business Solutions

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Revenue Cycle Management

Financial processes in healthcare, optimizing revenue through billing, claims processing, and payment collection while ensuring compliance.
Efficient Healthcare Revenue Cycle Management Solutions

Medical Scribe

Support professionals assisting healthcare providers with real-time documentation during patient encounters.
Medical billing services integrated with electronic health records (EHRs)

Information Technology

We provide comprehensive support for all your digital needs, from IT support to cybersecurity solutions.
Medical Documentaion | Advanced Medical Billing Technology for RCM Services

Medical Documentaion

Creation and management of patient records, including histories, treatments, and examination results.
Maximize Reimbursements with Revenue Cycle Management

Contact Center

Centralized communication hub for patient inquiries, appointments, and support services.
Accurate and HIPAA-compliant medical billing solutions by panaHEALTH

Remote Personell (Back Office)

Staff working remotely to support administrative tasks like billing, coding, and claims processing.
 

What Our Clients Have To Say

Our Founders

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Manish Thakur

Founder and CEO

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Brian Collins

President of Marketing

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Joe Johnson

President of Network Admin.

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