White Paper: How not to lose money when you migrate to a new revenue cycle system
System transitions are one of the most significant causes of lost revenue in healthcare revenue cycle management.
In this paper, we examine the key challenges of transitioning to new revenue cycle platforms and provide best practices from our experience across multiple platforms and supporting over 25 clients.
Accounts Receivable Run Down Strategies
For effective RCM platform transitions, effective integration of IT and business process transition plans would help in the elimination of revenue leakage and effective transition of elements such as:
- Patient Information and Charges
- Medical Information and EMR history
- Aged Accounts Receivable data
Furthermore, revenue cycle managers should work with the chief financial officers to decide on the method to value the aged A/R balances, the time period for which the collections effort needs to be initiated, develop guidelines for write-offs, and choose right partners.
Preparing for Revenue Cycle System Transition
Effective planning and strategic choices made during the A/R run-down effort determine the success of the project.
Pursue A/R Strategically - Extracting value from your Aged A/R
The success of your collections effort is dependent on the following
- Strategic pursuit of A/R. Going aggressively after accounts which are most likely to be paid while at the same time having a clear strategy of accounts with very low balances and very old A/R
- Define policies for operations team. Empower your A/R Team
- Get a specialized team
Utilizing a BPO vendor
Choice of BPO vendors should be dependent on their ability to resolve A/R rather than just obtain statuses of the balances. Resolution of each account may require a lot more interaction with internal stakeholders during platform migration than is normal. Therefore, it is imperative that you plan to support the vendor effectively. Both FTE based and contingency fee models are prevalent in A/R run-down project. Choose a contracting model that is apt for your situation.
Learn more about our Accounts Receivable Run-down Services