It is more crucial than ever to make sure that experts in fields like obstetrics and gynecology (OBGYN) are paid fairly for their services, as healthcare prices continue to climb. However, late payments from patients and insurance companies may cause you to have more accounts receivable.

The good news is that you can grow the organisation while maintaining financial stability using a range of strategies. Learn our best tips for enhancing paid accounts receivable in the medical field, especially OBGYN, from scheduling payments to streamlining your invoicing process.

OBGYN Healthcare Accounts Receivable (AR) Calculation

When it comes to medical billing, accounts receivable (AR) describes how long it usually takes an OBGYN healthcare provider to get paid for services given. Here’s how to figure it out:

Determine the total amount of accounts receivable (AR).

First, find the entire amount of outstanding debt for the OBGYN hospital. All outstanding invoices for rendered services that have not yet been paid for are included in this.

Find the daily average income

Divide the entire income received over a given time period (annually) by the total number of days in that period to get this.

Determine Days in AR

The entire amount of the AR balance is split by the average daily revenue. This will show how long it typically takes for the OBGYN hospital to get paid for the services you provided.

Days in AR = Average Daily Revenue / Total AR Balance

For instance, if the OBGYN medical facility has $200,000 in total accounts receivable (AR) and $20,000 in average daily income, then:

20 AR days are equal to $20,000 divided by $200,000.

This suggests that it will take the OBGYN medical facility 20 days on average to get paid for the services rendered. Healthcare providers can assess how well their revenue cycle management is working with their billing and collection processes by using the Calculate Days in AR tool.

Techniques for improving AR control in obstetrics and gynecology

Use Industry Best Practices for Coding and Billing Management: These are a few methods to enhance OBYN billing.

• Prevention is key to reducing the amount of time it takes to get paid back and have revenue opportunities.
• 48-Hour Turnaround Time : File claims as soon as possible after receiving the bill to guarantee speedier refund.
• Establish Clean Claim Objectives : To properly analyse front-end errors, strive for a clean claim rate of 97% or above.
• Deal with EDI Rejects Quickly : Utilise data to improve claims procedures and respond to EDI denials the same day.
• Use certified medical coders who are knowledgeable in OBGYN to guarantee accurate coding.
• Employ the proper modifiers : Add LT, RT, and 50, for example, if you’re providing OBGYN services.
• Observe the payer’s instructions : When coding, abide by payer policies to avoid rejects and denials.
• Prevent Over- or Under-Coding : Use exact coding, neither over- nor under-coding, to ensure right payment.

Adopt a revenue cycle approach that is driven by the front end.

Transferring back-end tasks to the front end is necessary for Obstetrics and Gynecology (OBGYN) medical centers to implement a front-end-driven revenue cycle process. This include determining the patient’s insurance status, obtaining pre-authorization if needed, and estimating their financial responsibilities prior to beginning treatment.

By doing this, prepayment opportunities are made possible, collection expenses are decreased, and the risk of bad debt is reduced. Getting pre-authorization up front also keeps control over the number of days that accounts receivable (AR) are outstanding and helps avoid rejected claims.

Recognise and specify your benchmarks for AR ageing. In order to fully comprehend accounts receivable (AR), it is evident that ageing analysis goes beyond just counting the number of days overdue.

• Examine the Payer Breakup to determine whether delays are caused by a particular payer mix or whether all payers satisfy the average payment timeframes.
• Establish Ageing Thresholds : To clearly define thresholds for AR ageing, run comprehensive reports that include payer breakdowns.
• Compare with Industry Benchmarks : To make sure your aims are reasonable, compare your thresholds to industry norms.
• Minimise Credit Balances : To preserve accurate computations and steer clear of deceptive insights, minimise credit balances in AR.
• Keep an Eye on Ageing : Analyse ageing indicators often to determine areas that require improvement and to assess how well you’re doing in relation to your goals.

Follow up on AR and honour your follow-up commitments.

• Payer Priority Follow-up : Sort the payer follow-up list based on importance, giving special attention to the oldest claims and large-value amounts. Think about fixing patterns that impact several claims.
• Establish No-Response Threshold : If a claim receives no response, set a threshold and start following up right away.
• Keep Complete Records of All Follow-Ups : To monitor progress and guarantee accountability, keep complete records of all follow-up actions.
• Define Follow-up Actions : To ensure consistency across processes, clearly define follow-up actions and the dates of the next follow-up.
• Apply Follow-up Filters : Apply filters to find and follow follow-up obligations so that claims can be closed and resolved for prompt payment.

Conclusion

Effective management of healthcare accounts receivable (AR) is critical to the success of organisations in the dynamic financial environment of OBGYN medical centers. Hospitals and other financially stressed medical facilities face serious issues due to declining AR turnover rates and deteriorating ageing timetables.

A thorough strategy is required to address the complications of a disrupted revenue cycle. It requires finding the root causes of problems in the revenue cycle structure and implementing workflow systems to match strategic goals and improve cash flow dynamics.

Adopting industry best practices across the revenue cycle can result in significant cycle time reductions. Just cutting the payment cycle by five to seven days can result in significant increases in cash flow, which will help healthcare practices continue to operate sustainably.

With a track record of success, Provider Billing and Coding (PBC) has helped a number of OBGYN Medical Centers identify areas for improvement and put in place efficient procedures to improve OBGYN account receivable services and dramatically increase cash flow. For more information, look at our OBGYN account receivable services.

For OBGYN offices, Provider Billing and Coding employs effective techniques to lower Days in Accounts Receivable and improve revenue flow. Get in touch with us right now!