You probably already know that healthcare is pretty complicated with all the changing rules, and that's why you need a solid hospital accounts receivable (AR) system to keep your practice’s finances in good shape. For you, just like other small and mid-sized hospitals, delayed, underpaid, and denied claims often mess up your AR. But don’t worry—you can still stay on top of your AR by really understanding "days in AR." You can efficiently track down the timeframe it takes for you to get paid by knowing the “days in AR.” Also, it enables you to improve your cash flow and ensure a smooth running of your overall operation. 

AR days can be defined as the average number of days that it takes for you to receive payments from your patients and their insurance companies.  Ideally, you must aim submit a claim within 72 hours after providing services, diagnoses, and procedures. Then, you should expect to get paid within 14 working days. But remember, if you’re slow with collections, your AR days will automatically increase.  

So, how do you calculate your AR days? It’s easy! You just divide the total accounts receivable amount by your average daily charge. The American Academy of Family Physicians suggests your AR days should be below 50, but it’s even better to aim for less than 30 days to keep your hospital's billing in perfect shape. This way, you can improve cash flow and avoid payment delays that could hurt your finances. By staying on top of AR, you can focus more on patient care and less on chasing payments! 

Fortunately, you can still streamline one of the perfect hospital accounts receivable solutions by implementing the effective tips mentioned below- 

1) Always remember that knowing a patient’s insurance details allows you to know their total coverage amount and potential out-of-pocket costs for them. You must focus on collecting critical information such as insurance details, patient-history, contact details, etc. You should always update a patient’s insurance information before every visit so that the insurance verification specialist can confirm that with the patient’s insurance company. Note one thing that verifying patient insurance allows you to know if your patient still owes you any amount from his past visit so that you can collect that amount efficiently.  

2) You must inform your patients about their insurance benefits and out-of-pocket payments. You can easily do this by drafting a policy that clearly talks about your payment expectations. To keep your accounts receivable days low, always collect co-payments, prepayments, and any outstanding payments when the service is provided. After the appointment, follow up by sending statements that show due dates, payment methods, and contact info for any billing questions. Offering different payment options makes it easier for your patients too. You should also regularly check patient aging reports and contact those with balances. Create strategies to handle both patients who pay on time and those with larger amounts due. This helps you stay on top of your billing and makes things run smoother!  

3) You should always keep an eye on pending payments from your patients’ insurance companies to make sure your hospital stays financially healthy. MGMA suggests looking at collections by payer to see which insurance companies are slow to pay and which ones have more denials. By doing this, you can take action to improve your cash flow and make sure payments come in on time! 

Efficient hospital accounts receivable services really come down to having the right people and the right processes. When you partner with an experienced hospital accounts receivable billing company, their experts handle everything for you. They use solid procedures and checks to help you collect overdue payments and stop your AR from piling up. This way, you don’t have to worry about chasing payments, and you can focus more on taking care of your patients. With the right help, your hospital’s finances can stay on track and run smoothly.