The efficiency of cash flow management is the lifeline for the survival and success of any organization in today’s time. Medical practices and healthcare providers are posing a great challenge in maintaining healthy cash flow since, by nature, medical billing and reimbursement processes are very complex.
It is at this juncture that technology makes a big difference in smoothing operations, thereby reducing AR days and improving business cash flow management.
The Importance of Cash Flow Management in Healthcare
Cash flow is the lifeblood of any business, and healthcare organizations are no different. Efficiently managed cash flow enables a medical practice to meet operational expenses, invest in new equipment, and deliver quality patient care without financial burden.
However, unique challenges for managing cash within the healthcare industry include the following:
- Complex billing processes
- Delayed insurance reimbursements
- Changing regulations and compliance requirements
- High administration expenses
These issues, when associated with an accrual-based practice, often lead to inflated AR days. Inflated AR days can wreak havoc on the financial health of any practice. That is where the creative use of technology helps. Innovative technology solutions can implement advanced tools for maximum cash flow management and lower AR days.
Using Technology to Better Manage Cash Flow
1. Advanced Medical Billing Software
Ehealthsource’s modern medical billing software is integrated easily within practice management systems, automating the bills and easing the process. Advanced systems will be able to:
- Verify insurance eligibility in real-time
- Generate accurate claims using built-in coding assistance
- Submit multiple claims electronically to payers
- Track the claim status, automatically generating follow-up letters
The AR days decrease substantially, improving cash flow as these technologies help minimize errors and speed up the overall billing process.
2. Predictive Analytics and Machine Learning
Advanced technologies, including predictive analytics and machine learning, have gone live in managing business cash flow in healthcare. Predictive analytics and machine learning are now capable of:
- Analyzing historical data to predict future cash flows
- Anticipating any delays or denials of payments before they occur
- Providing recommendations concerning the best payment options for patients
- Informing the prioritization of collection efforts based on payment probability
EHS uses these advanced technologies to provide actionable insights to providers with the ability to take proactive steps in managing cash flow.
3. Patient Portal and Online Payment Systems
As patients bear a greater share of the financial burden, easy-to-use payment options are extremely important in ensuring better cash flow. Technology-driven solutions include:
- Ease of use regarding patient portals for viewing and paying bills
- Multiple alternatives for online payments: credit cards, e-checks, payment plans
- Automated notices via email or text regarding payments
- Integration with practice management systems for real-time updates
By facilitating the bill understanding and payment process for the patients, these technologies will largely bring down AR days and improve the cash flow position in its entirety.
4. RPA
The RPA technology is revolutionizing the back-office operations in healthcare finance. With automation of repetitive tasks, RPA can achieve the following:
- Smoothening of claims processing and follow-ups
- Payment reconciliation and posting in patient accounts
- Preparation and dispatch of financial reports
- Denials and Appeals Management
Ehealthsource uses RPA to boost productivity by minimizing errors and allowing your staff to perform higher-value, more complex tasks, thereby improving cash flow management.
5. Cloud-Based Financial Management Systems
Among other benefits, a cloud-based financial management system for providers offers the following advantages:
- Real-time visibility to financial data anywhere.
- Better collaboration among departments.
- Software updates and other maintenance are automated.
- Greater security and data backup
These systems give a broad view of the organization’s financial health and enable better decision-making to manage cash flow proactively.
The EHS Advantage
At EHS, we respect the challenges that healthcare providers face in managing cash flow and reducing AR days. Our innovative solutions in medical billing make use of the latest technologies to ensure that your revenue cycle management is optimized.
Cash flow concerns shouldn’t be hindering your practice. Ehealthsource invites you to reach out today and learn how their innovative technology solutions will revolutionize the way you handle finances and put your healthcare organization on the path to continued growth and success.
