Accounts Receivable Management

Stop struggling with revenue cycle management challenges,

turnover and outstanding accounts receivable collections

Four things can occur for your billed claims. They can be

  1. Paid accurately
  2. Paid inaccurately
  3. Denied
  4. “Vanish into thin air”

Unfortunately, options 2, 3, and 4 happen to too many claims and the onerous work of accounts receivable follow-up is required to address these underpaid and unpaid claims.  These time-consuming and frustrating follow-up processes include:

  • Generating reports on the status of individual accounts
  • Performing denial follow up
  • Reviewing payment discrepancies,
  • Performing correction and rebilling activities
  • Processing secondary billing
  • Any necessary credit balance research and adjustments

Practices cannot afford long delays  in outstanding receivables, as these payments are needed to  paybills and grow the company. Typically,15-25% of cash collections are left on the table when these follow-up tasks are not completed or properly monitored.

Revenue Cycle Challenges:

Here are just a few of the revenue cycle challenges that are likely costing your practice thousands.

  • Denials. Denied claims represent the highest financial exposure, asall costs have been incurred but no payment has been collected. Plus, each denied claim usually costs your$15-20 per claim to handle the appeal, investigate, and then correct mistakes and rebill.
  • Long Delays. More than 20% of all accounts receivable are over 90 days old. These delays continually cost your practice.
  • Missed Deadlines. Payor guidelines for timely filing can be 90 or 120 days. If claims are not filed and/or corrected within those time frames, they may neverbe paid.
    Prioritizing. Some carriers’ timely filing guidelines are stricter than others. It can be difficult know which carriers’ claims you should prioritize to avoid nonpayment due to timing.
  • Tracking and follow-up. The number of additional information requests from carriers can also be difficult to keep up with and to manage in a timely fashion.
Key Performance Indicators Best Practice Standards
Insurance A/R aged more than 90 days from service date 15%
Insurance A/R aged more than 180 days from service date 5%
Insurance A/R aged more than 365 days from service date 2%
Bad debt write-offs as a % of gross revenue 2%
Net AR days 30 days

LEGACY CONSULTING Accounts Receivable  Services

We take those accounts receivable challenges and frustrations off your plate and ensure you are paid for the services provided with the following AR service options:

  • Run detailed, aged outstanding accounts receivable reports and create custom accounts receivable worklists for your team. These worklists assign tasks to specific team members and track productivity.
  • Provide payor and effective accounts receivable follow-up training to billers and collectors.
  • Establish daily and weekly goals for the number of accounts to be worked.
  • Provide custom accounts receivable reports, broken down by categories relevant to your specific needs (e.g.,  by practice, financial class, physician, payor).
  • Create custom worklists for carriers based on filing limits so that cases are prioritized based on the length of timely filing limits.
  • Offer revenue cycle tracking, including the number of accounts outstanding, number of accounts that have been worked, and the collections status and actions associated with these accounts.

How LEGACY CONSULTING differs from other RCM companies and the return on investment we deliver.

Our dedicated team has the experience and expertise to deliver better, faster accounts receivable management results. Here’s how we offer unparalleled AR outcomes for our clients.

  • We consistently reduce insurance accounts receivable over 90 days from greater than 20% to less than 10%
  • AR follow-up completed by dedicated accounts receivable team
  • Maintain staffing levels sufficient to minimize/prevent aged A/R build-up
  • Conduct regular quality control reviews of collectors’ work
  • Cross-train our collectors on multiple one payor types
  • Provide collector-specific worklist assignments, presented in descending balance order by payor
  • Employ online, third-party payor inquiry systems
  • Provide third-party/guarantor follow-up training and proven scripts to collectors
  • Identify and promptly address underpayments and full denials at time of payment posting
  • Set appropriate follow-up timeframes for each stage of follow-up on outstanding claims.
  • Measure and routinely discuss collector quantity and quality of productivity with collectors.
  • Review high dollar, high risk accounts and make recommendations.
  • Track write-offs and approvals.

Contact Legacy to discuss and receive a quote for AR Management Services!