Managing Days in AR

Revenue Cycle Challenge #1: Managing Days in AR

For your ambulatory surgery center (ASC) to operate efficiently, you need to prioritize revenue cycle management and identity and address any problems that are affecting your billing, collections, or cash flow.

Regent RCM helps ASCs nationwide find solutions to revenue cycle challenges. We provide billing and collection services that outperform industry benchmarks and allow you to focus on your most important responsibilities. In a new content series, we will outline some of the most common revenue cycle challenges and how to navigate them.

Revenue Cycle Challenge #1: Managing Days in AR

Days in AR is a metric that offers a lot of information about your ASC’s financial health at a glance. The industry standard is that days in AR should not exceed 30% but Recent RCM’s gold standard is keeping days in AR over 90 below 25% and making sure AR follow-up includes 95% of claims per month.

Steps to Improve Days in AR

If you want to improve your center’s days in AR, you can start by taking these actions:

  • Do a quality audit

Review your billing and collections processes, looking for any gaps in your revenue cycle. How quickly are you billing claims after the date of service? Is your center receiving a high volume of claims denials? Are claims appeals sent quickly (within 24 hours)? Who is responsible for following up on outstanding claims? Can you identify a need for additional staffing or training?

  • Focus on financial counseling and up-front collections

Patients can be responsible for as much as 30% of payments, and up-front collections are a major factor in days in AR. If patients are unaware of their financial responsibility or unprepared to provide copayment, deductible, or co-insurance amounts, you will likely see negative effects in your AR over 90 days.

Incorporate patient education and financial counseling into your revenue cycle management, and establish a clear up-front collections process. Do patients know what they will owe before they come in for a procedure? Do they have a payment plan? Talk to patients in advance, offering financial counseling and outlining up-front collections expectations to decrease days in AR. We have seen this step make a big difference in improving collections and financial health for ASCs we work with.

Read about two of Regent RCM’s ASC success stories from 2020.

Internal Auditing for ASCs: Are You Receiving Maximum Revenue?

How would you rate the overall financial health of your ambulatory surgery center?

Are you producing maximum revenue – or are you running into obstacles that interfere with your profitability?

As an ambulatory surgical center (ASC) administrator, you have an extensive to-do list on any given day. However, it’s important to make time to step back and look at your big-picture financial goals and processes.

Conducting an internal revenue cycle audit is an effective way to evaluate your ASC’s operations, identifying financial stress points, strengths, and opportunities. An internal audit examines, quantitatively and qualitatively, all components of the revenue cycle process. It helps you ask the right questions to reveal what is working and what can be improved, helping your center get on track and stay on track.

If you’ve noticed negative changes in important benchmarks, such as accounts receivable days, net collection rates, or statement and charge lags, a revenue cycle audit may be the best course of action.

According to Regent RCM’s Director of Revenue Cycle Management Erin Petrie, a successful self-audit focuses on four main financial areas of an ASC:

Reimbursement

Do a thorough examination of your center’s billing and reimbursement procedures, paying close attention to payer contracts and total revenue collected.

Coding and Billing

Evaluate coding procedures, whether your ASC has a certified coder on staff or outsources services. Determine if cases are coded and billed correctly, identifying inaccuracies that could delay, reduce, or invalidate claims.

Staffing

Assess how administrative employees spend their time and what causes their pain points. What

facilitates smooth operations? What requires excessive time or effort to accomplish?

Observation

Scrutinize business office functions over time, noting recurring inconsistencies or inefficiencies. Look for solutions, through technology or processes, that could address these problems.

To help you get started, the experts at Regent Revenue Cycle Management have developed a free guide, “How to Self-Audit and Improve Your ASC’s Financial Health.” It takes an in-depth look at key revenue cycle functions, giving you the information you need to keep your ambulatory surgical center within compliance while producing maximum revenue. Download the full guide here.

Reasons to Outsource

4 Steps of a Regent RCM Business Office Audit

A Regent Revenue Cycle Management (Regent RCM) audit goes beyond a traditional reimbursement assessment. “The benefits of an audit are clear,” said Michael Orseno, VP of Revenue Cycle at Regent RCM, “and we ensure that facility time commitment is minimal. Our ASC-specific expertise allows us to complete the process in about two weeks.”

This is a quick turnaround, particularly considering the potential upside. In the case of one client, a business office audit uncovered coding errors which led to recouping more than $590,000 in additional funds.

An audit is comprised of four steps:

  • Initial Data Request*. Access to information is vital, and centers will provide a variety of data including but not limited to year-to-date case count and payer mix.
  • Initial Analysis. After collecting and reviewing initial data, Regent RCM selects multiple cases for a more detailed review and analysis.
  • Full Analysis. Pinpointing a number of cases, the Regent RCM team dives deeper using an internal audit tool set.
  • Once the audit is complete, Regent RCM will present findings on-site and provide detailed, strategic recommendations to ASC leadership.

In an upcoming blog, Regent RCM will further define the four key components of an audit including reimbursement, coding, staffing and observation (workflow and process).

Ready to get started? Call Regent RCM’s dedicated team today (312) 882-7228 to schedule an audit for your center.