Why You Should Hire Medical Accounts Receivable Financing Service?Posted by Amit Gupta on November 19th, 2019 Having excellent accounts receivable management in place can successfully yield amazing results, transforming the cash flow in the medical business from negative to positive. It is not too tough to keep this process seamless and continue enjoying good results. Here, we discuss the common problems faced and the possible solutions to overcome them. Insurance Claims Denial: One of the most common problems caught by medical accountants in London in accounts receivable is denied insurance claims. Healthcare firms commonly lose as much as 10 percent potential profits if the process of denial management is inappropriate. This problem can be solved by reviewing each claim form before it is submitted so that it adheres to the guidelines. Moreover, it is essential to follow up these denied claims which must be thoroughly investigated and determined if they need to be submitted. Unnecessary write-offs: Many times, it is seen that the team that manages accounts receivables do not maintain payments that are less in amount. It has an impact on the hospital’s balance sheet. It is not uncommon to see some patients who are ready to pay in installments to lower their medical debt. Before writing-off anything, the management team must review and approve irrespective of the amount. Moreover, it must also be maintained properly in accounts. This way, it becomes easier to know if the business is incurring losses. Bad Debts: Another problem that is faced is the increase in bad debts. It is important to note that it is still the patient’s responsibility to contribute towards more than 1/4th revenue of the healthcare industry. This responsibility is no longer restricted only during the time of service but more. It has become increasingly critical to collect payment from the patient across the complete revenue cycle. This problem can be solved by gathering comprehensive information regarding billing and insurance before the service is imparted and the expected cost is calculated. This verification of insurance bills, coverage, etc., helps patients in understanding and agreeing towards this responsibility. Medical accountants in London keep an eye on these issues and provide the best solution before the problem becomes unmanageable. About the Author: Amit Gupta, Director, Allenby Accountants. Allenby Accountants is an independent accounting firm, located in Uxbridge, West London. We are accountants, business advisers, offering financial services and helping you to achieve your business ambitions. Our offered range of services include accounting, bookkeeping, tax management, VAT management, tax planning, Inheritance tax, capital gains tax issues, succession planning, etc. We specialise in offering services to sectors like medical & healthcare, retail industry, professional services, property & construction industry, charity and not-for-profit organisations and more. Like it? Share it!More by this author |