Maintain a Healthy Cash Flow with Outsourced Accounts Receivable for Healthcare

Managing accounts receivable can be a time-consuming and challenging task for healthcare providers. 

With the ever-changing landscape of healthcare regulations, it is crucial to have an efficient and organized system in place to ensure timely payments and maintain a steady cash flow. 

This is why many businesses in the industry are choosing to outsource accounts receivable services for healthcare.

Outsourcing these services allows healthcare providers to focus on their core competencies while leaving complex financial responsibilities to experienced professionals. 

In this article, we will explore the benefits of accounts receivable outsourcing for healthcare and highlight some of the best practices in finding specialized service providers who offer tailored outsourcing solutions for the industry. 

Benefits of Outsourcing for Healthcare Providers

Outsourcing accounts receivable services for healthcare offers numerous benefits that can positively impact a provider’s financial health. Here are some of the top advantages:

Financial efficiency and cost reduction

Outsourcing accounts receivable services allows you to save on operational costs and reduce the need for hiring in-house staff for these tasks. 

Specialized service providers have the necessary expertise, advanced technology, and resources to efficiently manage accounts receivable at a fraction of the cost compared with managing them in-house.

Improved cash flow management

With dedicated professionals handling accounts receivable, you can expect a more streamlined and efficient process.

This leads to faster collections and improved cash flow management, ensuring your revenue is not tied up in overdue or unpaid bills.

Enhanced compliance and risk mitigation

Healthcare providers are subject to strict compliance regulations, and any errors or omissions in your financial processes can result in costly penalties.

Outsourcing accounts receivable services to specialized external providers who understand the industry’s regulations and compliance requirements can significantly minimize the risk of noncompliance.

Focus on core healthcare services

By outsourcing accounts receivable services, you can shift your focus and resources toward providing quality patient care. 

The burden of managing complex financial tasks is lifted, allowing for more time and energy to be dedicated to core services.

Key Outsourced Accounts Receivable Services

Outsourcing accounts receivable services for healthcare involves delegating the management of your billing and collection efforts to a specialized service provider. These services typically include:

Accurate billing and invoicing

A reliable accounts receivable service provider will ensure accurate and timely billing and invoicing. This includes verifying insurance information, submitting claims to insurance companies, and following up on denials or rejections.

Denial management and resolution

Denied or rejected claims can significantly impact your cash flow. Outsourcing accounts receivable services for healthcare includes managing and resolving these issues to ensure prompt payment.

Claim follow-ups and tracking

Following up on unpaid claims and tracking their progress is a time-consuming task that can be easily outsourced. This allows you to focus on delivering quality patient care while your service provider handles the administrative tasks.

Patient account management

Outsourcing patient account management involves handling patient inquiries, processing payments, and managing accounts receivable. This ensures prompt and accurate handling of patient billing and collections.

What To Consider When Choosing an Outsourcing Partner

When outsourcing accounting services like accounts receivable for healthcare, choosing a reliable partner is essential. Here are some factors to consider when selecting an outsourcing provider:

Industry expertise

Healthcare is a complex and highly regulated industry, so it is crucial to work with a service provider that has deep experience in the healthcare sector.

They should have a thorough understanding of medical billing practices, insurance claims processing, and other financial processes specific to the industry.

HIPAA compliance

The Health Insurance Portability and Accountability Act (HIPAA) sets standards for protecting sensitive patient information. 

According to HIPAA Exams, If your outsourced accounts receivable professional will be handling protected health information (PHI), they must be HIPAA-compliant. This is vital for safeguarding patient data and maintaining confidentiality.

Technology and software

An outsourcing provider should have access to cutting-edge technology and software used in healthcare billing and financial management. This will help streamline processes, minimize errors, and improve efficiency.

Customized solutions

Healthcare practices vary in size, specialty, and scope of services. It’s crucial to find an outsourcing partner that offers tailored accounts receivable solutions to meet your specific needs.

Cost effectiveness

Outsourcing accounts receivable services for healthcare can significantly reduce overhead costs associated with hiring in-house staff. Choose a provider that offers competitive pricing without compromising on the quality of services.

Language and cultural compatibility

It’s critical to outsource to accounting professionals who understand English and any other languages you or your customers use. Cultural compatibility is also necessary for a successful working relationship. This will ensure effective communication and collaboration between your practice and the outsourcing provider.

While you may think you have to keep your accounts receivable operations in the US, with the proper recruitment support, you can find outsourcing partners based in foreign regions like Latin America (LatAm) who are fluent in English and have a cultural understanding of the US healthcare industry.

Top 3 Accounting Outsourcing Partners for Healthcare Providers

There are many accounts receivable outsourcing service providers on the market. However, not all of them are specialized or experienced in handling financial tasks for healthcare businesses, making it important to ensure they have extensive experience serving this industry. 

Here are three top accounts receivable outsourcing and recruiting partners (in no particular order) that offer tailored solutions for the industry:

1. Near

Near understands the unique needs and challenges of healthcare businesses. Our comprehensive recruitment process can help them hire accounts receivable management professionals who specifically meet their requirements. 

Our talent pool includes remote accounting experts based in LatAm who are well versed in US healthcare regulations and industry-specific accounting software, ensuring an accurate and compliant accounts receivable process.

With cost-effective options and a culturally compatible approach, Near is an ideal partner for healthcare providers looking to outsource their accounts receivable services.

2. Invensis

Through 24 years of experience, Invensis has established itself as a leader in business process outsourcing (BPO). 

Its medical accounts receivable services include follow-ups, payment posting, denial management, accounts receivable aging analysis, patient account management, remittance advice, write-offs, financial reporting, medical billing, and more.

3. Outsource RCM

Outsource RCM is a healthcare back-office outsourcing firm based in Princeton, New Jersey. It is HIPAA-compliant, ISO-certified, and a member of the Radiology Business Management Association (RBMA).

Its healthcare accounts receivable services include medical billing, cash management, bad debt analysis, credit balance, insurance verification, denial management, patient billing support, revenue cycle analysis, and claims adjudication.

Final Thoughts

Outsourcing accounts receivable services for healthcare can bring numerous benefits to your business, including improved financial efficiency, enhanced compliance, and a greater focus on core services. 

By partnering with specialized service providers, you can streamline your financial processes and maintain a healthy cash flow while ensuring faster payments from insurance companies and patients. 

At Near, we understand the importance of finding the right professionals for your finance needs. 

That’s why we provide comprehensive support in recruiting skilled talent from LatAm who offer accounts receivable services tailored specifically for the healthcare industry. 

Take the first step toward a healthier cash flow and more efficient financial processes by booking a free consultation call today.

Frequently Asked Questions

How is accounts receivable outsourced in healthcare?

Accounts receivable in healthcare is calculated by adding up all of the unpaid balances for services provided to patients and insurance companies. These include both current and past due amounts.

What is KPI in medical billing?

KPI stands for key performance indicator and is a measurable value used to evaluate the success of an organization or specific activities. 

In the medical billing process, KPIs can include metrics such as the percentage of claims denied, average days in accounts receivable, and net collection rate.

How can you decrease accounts receivable in healthcare?

Outsourcing accounts receivable services for healthcare can help decrease the average days outstanding (ADO) and improve cash flow through efficient billing, timely follow-ups on claims and denials, and accurate patient account management.