What is Days in Accounts Receivable?
Days in Accounts Receivable = the average time from performing services to receiving payments. It’s also known as Accounts Receivable Days and Days Sales Outstanding (DSO).
Generally speaking, lower is better. But not if it means writing off collectible revenue!
Would you rather get your money faster or get all your money?
If you answered “both” then you’re thinking like we do… however the sad truth of medical billing is that payers don’t always promptly pay the full amount that you’re contracted to receive.
We’re dedicated to maximizing your revenue. This means that for contracted payers, we compare every line item payment as it is received ensuring that it meets the expected amount in our system. You would be appalled to see how often payers pay less than the contracted amount. Most billing companies either can’t see these minor underpayments or choose not to fight them.
We think this kind of systemic underpayment is outrageous. And we fight it. This takes a little more time (and effort on our part) but it helps result in increases of 5-15% in collections for our clients.
We also take the time to dispute invalid claim rejections and go back and forth with payers on exactly what the contract entitles you in payment.
In short, we force payers to meet their obligations. So when a payer tries to reject or discount a valid claim, we fight it. It all takes time but results in more take-home pay for our clients.
We are astounded by competitors who brag about keeping their client’s accounts receivable down to 25 or 30 days.
25-30 days is not enough time to do much more than submit a claim and cash the check with no arguments. That would be great of payers paid in full every time– but they don’t.
Maximum Money in Minimum Time
Of course, it is important to file claims and turn around issues with the payers promptly.
That’s why we have numerous systems in place to ensure that claims are filed within 24 hours without errors, objections are handled quickly, and monies are deposited promptly.
- Billing turnaround time is within 24 hours of system having complete and verified billing data
- Every claim is checked five times by both humans and automated systems to ensure a clean initial submission and to eliminate the chance of a valid claim delay or rejection on the part of the payers.
- Every claim is monitored to ensure that payer turn-around is within contracted time frames. Immediate follow-up is performed for claims that do not meet specified time frames.
- Most claims are paid via electronic transfer allowing funds to be available immediately.
We also produce a wide range of reports that show where all claims are at any given moment and can break accounts receivables down by payer, service, or time in accounts receivable. These reports are available to our clients at any time and are used to ensure maximum payment in minimum time.
It’s obviously important to get paid promptly, but wouldn’t you rather get paid in full?
Find out if we can increase your take-home by 5-15%.
We offer a no-obligation audit showing you exactly how much money your current billing company might be leaving on the table by focusing on a low days in accounts receivable rather than maximizing collections.
We’ll clearly show what your current company billed and collected versus what your contracts call for– and what we would have billed and collected.
Call us at 262-787-4050 or contact us for your no-obligation 6-month comparative analysis.