Tips for OBGYN to Improve Days in Accounts Receivable

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Tips for OBGYN to Improve Days in Accounts
Receivable
As healthcare costs rise, it is more important
than ever to ensure that specialists in
specialties such as obstetrics and gynecology
(OBGYN) get compensated for their services.
However, raising your accounts receivable may be
an issue due to patient and insurance company
late payments. The good news is that you may use
a variety of techniques to expand while keeping
the organization's finances intact. Discover our
top ideas for improving paid accounts receivable
in the healthcare business, particularly OBGYN,
ranging from payment schedules to accelerating
your billing procedure.  Accounts Receivable
(AR) for OBGYN Healthcare Calculation Accounts
Receivable (AR) in medical billing refers to how
long it typically takes an OBGYN healthcare
provider to receive payment for services
rendered. Here's how to determine it Calculate
the entire balance of accounts receivable
(AR) Determine the OBGYN hospital's total
outstanding debt first. This covers all unpaid
bills for performed services that have not yet
been paid for.
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Tips for OBGYN to Improve Days in Accounts
Receivable
Determine the average daily income To compute
this, divide the total income earned during a
certain period (annually) by the total number of
days in that period. Calculate Days in AR The
daily average income is divided by the total
amount of AR balance. This will indicate the
average time it takes for the OBGYN hospital to
be compensated for the services you have
rendered. Average Daily Revenue / Total AR
Balance Days in AR For example, if the total
amount of accounts receivable (AR) at the OBGYN
medical facility is 200,000 and its daily
average revenue is 20,000, then  20,000
divided by 200,000 20 days in AR  This
implies that the OBGYN medical facility must wait
an average of 20 days before being reimbursed for
the services provided. The Calculate Days in AR
tool helps healthcare providers evaluate the
effectiveness of
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Tips for OBGYN to Improve Days in Accounts
Receivable

• their revenue cycle management in billing and
  collection operations.
• Strategies for enhancing AR management in OBGYN
  practice
• Implement Best Practices in Billing and Coding
  Management Here are some approaches to improve
  OBYN billing.
• Preventive Therapy Avoid refusals, delays, and
  denials to reduce time to reimbursement and
  income possibilities.
• 48-Hour Turnaround Time To ensure quicker
  reimbursement, submit claims within 48 hours of
  receiving the charge.
• Set Clean Claim Goals Target a clean claim rate
  of 97 or higher to analyze front-end errors
  effectively.
• Handle EDI Rejections Promptly Address EDI
  rejections on the same day and use data to refine
  claims processes.
• Employ trained medical coders with OBGYN
  knowledge to ensure correct coding.
• Use the appropriate modifiers For OBGYN
  services, add suitable modifiers like LT, RT, and
  50.

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Tips for OBGYN to Improve Days in Accounts
Receivable

• Follow the payer's guidelines Respect payer
  policies to prevent denials and rejections while
  coding.
• Avoid Over- or Under-Coding To guarantee correct
  payment, code preciselyneither under- nor
  over-coding.
• Implement a front-end-driven revenue cycle
  process
• Implementing a front-end-driven revenue cycle
  process in Obstetrics and Gynecology (OBGYN)
  medical centers requires transferring back-end
  duties to the front end. This involves finding
  out whether the patient has insurance, getting
  pre-authorization if necessary, and calculating
  their financial obligations before starting
  treatment.
• Doing so allows for pre-payment opportunities,
  reduces collection costs, and minimizes bad debt
  exposure. Obtaining pre-authorization upfront
  also prevents rejected claims and maintains
  control over days in accounts receivable (AR).
• Understand and define your AR aging benchmarks.
  Clearly, to gain a comprehensive understanding of
  accounts receivable (AR), it's crucial to analyze
  aging beyond just the total days outstanding.

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Tips for OBGYN to Improve Days in Accounts
Receivable

• Analyze Payer Breakup Assess if all payers meet
  average payment timelines or if delays stem from
  specific payers in your mix.
• Set Aging Thresholds Run detailed reports with
  payer breakdowns to establish clear thresholds
  for AR aging.
• Compare with Industry Benchmarks Benchmark your
  thresholds against industry standards to ensure
  realistic targets.
• Minimize Credit Balances Reduce credit balances
  in AR to maintain accurate calculations and avoid
  misleading insights.
• Monitor Aging Closely Continuously track aging
  metrics to gauge progress towards goals and
  identify areas needing improvement.
• Perform AR follow-up and maintain follow-up
  promises
• Prioritize Payer Follow-up Organize the payer
  follow-up list by priority, focusing on the
  oldest claims and high-value amounts. Consider
  addressing trends affecting multiple claims.
• Set No-Response Threshold Establish a threshold
  for no-response claims and promptly initiate
  follow-up beyond this limit.

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Tips for OBGYN to Improve Days in Accounts
Receivable

• Document All Follow-ups Maintain thorough
  documentation of all follow-up actions to track
  progress and ensure accountability.
• Define Follow-up Actions Develop clear follow-up
  actions with designated next follow-up dates,
  ensuring consistency across processes.
• Implement Follow-up Filters Utilize filters to
  identify follow-up commitments and diligently
  adhere to them, facilitating closure and
  resolution of claims for timely payment.
• Conclusion
• In the dynamic financial landscape of OBGYN
  medical centers, efficient management of
  healthcare accounts receivable (AR) stands as a
  pivotal factor in organizational success.
  Declining AR turnover rates and deteriorating
  aging schedules pose significant challenges for
  cash-strapped medical facilities and hospitals.
• Addressing the complexities of a distressed
  revenue cycle demands a comprehensive approach.
  It necessitates identifying underlying issues
  within the revenue cycle framework and
  instituting workflow mechanisms to align with
  strategic objectives and enhance cash flow
  dynamics.

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Tips for OBGYN to Improve Days in Accounts
Receivable
Through the adoption of industry best practices
across the revenue cycle, considerable reductions
in cycle time can be achieved. A mere reduction
of 5-7 days in the payment cycle can yield
substantial improvements in cash flow,
facilitating the sustainable operation of
healthcare practices. Medical Billers and Coders
(MBC) have a proven track record of assisting
numerous OBGYN Medical Centers in not only
pinpointing areas of improvement but also
implementing optimized workflows to enhance OBGYN
account receivable services and significantly
bolster cash flow. Explore our OBGYN account
receivable services for further
insights. Medical Billers and Coders implement
efficient strategies to reduce Days in Accounts
Receivable and enhance revenue flow for OBGYN
practices. Contact us today!