Imagine opening your car window while on a road trip while you have an important stack of papers in the passenger’s seat. It will only be a matter of time until those papers get caught by a wind gust, never to be seen again. Now, think of time as the wind, and your organization’s cash flow as the papers: The more time that passes after services rendered, the more money flies out the window.
While you might not think that you’d be the irresponsible driver allowing your cash to fly out the window, if you’re letting collections sit in A/R for longer than 30 days, your money might be carried away in the breeze. With patients responsible for a greater portion of their healthcare bill, organizations need a patient payments collections process to keep A/R days low and cash influx high.
Take a look: Although stats vary across payers and health plans, here’s a typical picture of what you might collect based on number of days in A/R:
- If patients pay within 30 days, you can expect that nearly 95 percent of patient bills will be paid
- At 30-59 days, you may recoup 85 percent of the total outstanding A/R
- At 60-89 days you’re looking at only 75 percent
For accounts over 90 days, when you add collection agency fees, you’ll see a measly 10 percent of your A/R collected
Those numbers represent significant risk that organizations shouldn’t have to live with. Especially since it can be easily avoided with a sound collections process and patient payment solutions designed to optimize the revenue cycle.
The key to decreasing A/R days is making it simple for patients to pay their co-pays and other unpaid balances, via web portals, credit-card-on-file solutions, one-time automated payments or even automated payment plans.
Get paid sooner, get paid more. That’s the motto that will help keep cash in your pocket and not flying out the window! For more information on how to avoid sending patient accounts to a collections agency, Give us a call. 877.230.1841 or email firstname.lastname@example.org or visit us at http://medscriptsinc.com