Whether you’re shifting to a new medical billing partner or revamping your revenue strategy, addressing legacy A/R (accounts receivable) is a significant undertaking for any physician practice. With a well-defined plan, you can avoid disruptions in cash flow, unresolved accounts, and increased staff and patient frustration as you migrate solutions.
In this blog post, we’ll guide you through the process, addressing the challenges and seizing the opportunities of A/R wind-down. A successful wind-down strategy is invaluable during a conversion. It minimizes risks and positions your project for success. Consider these best practices for A/R wind-down projects.
Challenges and Opportunities
Before we delve into the steps involved in legacy A/R wind-down, it is important to recognize the issues and opportunities with any project. You could be challenged with collateral damage from your previous vendor, a significant amount of unresolved balances, and uncollected funds—which can negatively impact your revenue potential. Your staff and patients may feel frustrated and confused with the uncertainty of unresolved accounts. The opportunities available outweigh the challenges.
Opportunities
- Develop a strategic approach. A new strategy provides a chance to revisit old A/R and identify overlooked revenue opportunities.
- Improve revenue generation/stream. By addressing legacy A/R, you can maximize reimbursements and improve patient financial standing with your practice.
- Increase communication. Effective communication across your healthcare organization can boost patient loyalty and cost savings.
Steps to Take for a Successful A/R Wind-Down Project
- Evaluate Third-Party Business Partners. Begin by considering third-party partners who specialize in legacy A/R projects. This shift allows you to focus on current accounts while experts handle legacy A/R. Ask pertinent questions to ensure potential partners meet your needs, from expertise and resource pool to data storage and auditing assistance.
- Define the Cleanup Project. Clearly define what your legacy A/R cleanup project looks like. Determine the date range, financial classes, and the scope of the project. Set goals and decide which accounts to pursue and which to write off.
- Engage and Analyze. Engage with your chosen partner or internal team and migrate the data file. Conduct an initial analysis to identify patterns or trends to help prioritize the team’s efforts.
- Kick Off the Project. Once the analysis is complete, it’s time to kick off the project. All accounts go live, back posting is done, special projects are created, and initial claims are sent.
- Continue Billing Activities. Maintain regular billing activities, such as sending claims, work rejects and denials, sending patient statements, and handling appeals, calls, and requests. Depend on your internal team or third party to assist with attorney requests, provide access to real-time data, and prepare for audits.
- Final Step. As the project wraps up, decide whether to house the data long term or with a third-party partner, and discuss the delivery format. Ensure access to all accounts for seven years from the service date. Evaluate metrics, budget adherence, return on investment, and project success.
Transitioning to a new medical billing partner or optimizing your revenue strategy is a complex process. However, with a well-developed wind-down plan, clear goals, and strategic partners, you can navigate this journey successfully, turning challenges into opportunities and safeguarding the financial stability of your practice. The key is approaching the legacy A/R wind-down with meticulous planning and an eye for opportunity.