Healthcare providers are always searching for a better way to get paid for services rendered.
Decreasing accounts receivable (AR) days is the best way to measure the success of your revenue cycle management strategy. But how can you reduce AR days when they rely on the speed of insurance payouts?
More and more Americans lack insurance and 1 in 4 patients have a high deductible health plan. This means revenue that doesn’t depend on insurance companies comes directly from patients’ pockets.
Want to know how to reduce AR days without arguing with insurance companies? Keep reading and I’ll show you how medical lending can help patients pay medical debts faster.
AR Days as a Measure of Revenue Cycle Management Success
Accounts receivable days are those that pass between a patient’s discharge and the reception of payment for care.
AR days measure how well you’re collecting on debts. If your AR days are high, your cash flow is impacted.
Both insurance companies and self-pay patients contribute to the number of days debts go uncollected. While you can’t do anything about the former, there is something you can do to help patients pay faster.
Medical Lending Reduces AR Days
Patient loan programs decrease AR days and improve margins at your hospital or practice.
Trying to improve the speed of insurance payouts is futile. Instead, financing for patients helps self-payers take care of their medical debts faster. Meanwhile, healthcare providers are paid upfront and in full for your services.
At Epic River, we put our patient financing software to the test. Mary Lanning Healthcare and Columbus Community Hospital implemented our medical lending program to improve AR days.
Here are the results:
- Mary Lanning Healthcare reduced AR days by 2.5 days
- Columbus Community Hospital improved AR by 1 day
But that’s not all. Both providers also improved patient and employee satisfaction. How’s that for a win-win?
Are you looking for a way to reduce accounts receivable days and improve margins? Epic River’s patient lending program is here to help. Learn more about our program or contact us to start reducing AR days at your hospital.