Accounts Receivable Backlog Clearance

$10 Million collected from accounts receivable backlog, Positioned client for Growth

PERSPECTIVE

A/R Backlog Clearance

Accounts Receivable backlog is not uncommon, particularly considering the ever-increasing complexities of Revenue Cycle Management. While somewhat understandable, the negative impact on the business can be severe. Not only does overall financial health suffer, but reputations and growth opportunities will be compromised for billing companies and healthcare systems.

 

SITUATION

A regional billing company faced growing competition, and its growth trend in acquiring new provider customers was underperforming. To complicate things, their current book of business was suffering a growing backlog with no relief in sight. This complication was a symptom of what could theoretically be considered a "nice problem to have"” Yet that was not necessarily the case here. The source of the growing backlog wasn't purely driven by an increase in volume. The primary driver was a business methodology that had outlived its usefulness. And simply solving the backlog with extra labor would only serve as a band-aid. It would not solve the source of the problem.

 

OBJECTIVES

  • Collect the revenue in backlog while the business continues to operate.

  • Deliver a best practice methodology to be applied to the whole business.

  • Mitigate future disruption.

  • Enable capacity for growth in the current book of business.

  • Enable capacity for future new provider practices.

SOLUTION

In approximately 30 days, we comprehensively assessed the organization’s A/R footprint. The assessment covered ICD coding, coding denial management, demo, and charge, payment, claims filing, secondary filing, patient statements, filing rejects, returned mail, refund and overpayment process, and A/R follow-up. A summary of the assessment concluded a substantial opportunity to improve cash flow results in all areas.

The customer empowered Access Healthcare to execute the recommended transition to a comprehensive billing support model delivering a $10,660,519 capture in AR. The results were achieved by applying Access Healthcare's best practices in management to protect and prepare for the future. See our process.

Within four months of go-live, Access Healthcare delivered an improved business footprint to the customer, effectively meeting all 5 objectives as evidenced by their growth to include 6 new providers. Additionally, the > 90 days A/R business is 18% (floor KPI is 20%).


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