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6 Effective Ways To Reduce AR Days in Oncology Billing

High AR days are always a cause of concern for oncology practices. Not only do they indicate delayed payments, but they also reveal a lot about the poor financial situation. Their impact is usually in the form of:

Cash flow crisis resulting in a greater inability to buy expensive, essential medicines
Additional administrative burden due to burnout among staff members
Repressed growth because of limited cash to put into technology or practice growth
Compromised patient care on account of financial instability

These issues get amplified because of complicated treatment plans, expensive drug regimens, and complexities like bundled services. Proper AR management can mitigate all these risks. But it demands right planning, which we are going to talk about.

Use Technology To Your Advantage

It is a good idea to use revenue cycle software that estimates treatment costs. Many solutions can even predict out-of-pocket expenses. Such solutions may hypothesize payments for high-cost cancer medications and treatments not included under the insurance plan.

This allows oncology practitioners to notify their patients about their due payments. It also helps them get a quick view of the billing and payment status.

Another way technology helps is through the automation that EHR integration brings. The main software captures all the components of patients’ treatment and billing records. This helps maintain billing accuracy and reduces the denial rate.

Ensure Clean Claim Submission

Getting your claim through in the first attempt is not a single-step tactic. It rather demands a comprehensive strategy of maintaining procedural accuracy throughout the RCM workflow. Here is what it fundamentally involves:

Accurate data capturing (patient’s demographics, insurance details, billing information)
Precise coding using accurate CPT/ICD-10 codes and modifiers
Obtaining prior authorization for medications and treatments that require pre-approval

Remember, submitting clean claims makes your revenue cycle simple and efficient. You get faster reimbursements. This automatically reduces AR delays.

Set Your AR Goals And Stick To Them

Setting your AR objective has to be a crucial part of your RCM strategy. It makes perfect sense. When you think of reducing AR days, you must think about how much AR delay is acceptable. In general, a delay of less than 30 days is considered ideal. But it can exceed this benchmark for specific facilities, depending on their size and the payers they deal with. Once you have a clear figure in mind, you will be able to plan and work for a practical target. The best approach is to discuss your AR goals with your revenue team.

Give Your Patients Multiple Payment Options

Securing outstanding dues from patients is relatively easier than applying for insurance payments. All you need is to be proactive. One way to ensure this is to offer your patients more than one payment option. The most common options include payments through cheques, credit cards, and online banking.

Facilitating your patients like this can significantly reduce your accounts receivable days. They will be able to pay you as soon as they receive their bills.

Target Big Payers In The Industry

You should look out for the top 5-7 payers who have fulfilled the highest number of AR requests in the past 90 days. This simple yet quantified approach can help you choose payers that not only do not delay payments but have a lower denial rate as well.

However, this doesn’t absolve you from adhering to payer-specific policies. Every insurance company has a unique set of claim submission protocols. Some, however, provide guidance and remain helpful during claim processing. They are more likely to pay in the shortest possible time. Be sure to find such payers to keep your AR delay minimal.

Outsource your Oncology Billing

Perhaps the simplest way of all is to acquire the services of a billing company. As an oncology practice, it can become difficult to maintain the balance between patient care and revenue cycle management. A billing company takes this entire burden, allowing you to provide quality care to your patients. Their specialized mechanism for AR management particularly helps accelerate cash flow.

However, it is imperative that you choose a company that has extensive expertise in managing complex oncology billing and RCM. More specifically, go for a vendor that maintains a respectable clean claim ratio.

At AltuMED, we strive to keep your oncology billing profitable. Our best-in-class revenue department and cutting-edge tech ensure you get a consistent, enhanced revenue stream.