Prevention of billing revenue loss is an ongoing challenge for most small businesses in the healthcare industry. This is not confined to a time of crisis such as the COVID-19 pandemic. Even in normal times, the typical small business possesses enough cash to cover about two weeks of revenue disruption, according to a report by JP Morgan Chase & Co. According to another study, a business with monthly expenses over $10,000 generally doesn’t have enough cash to cover two weeks of their spending. This suggests that a company in this situation would either have to fold or drastically cut spending in the absence of a credit line or cash infusion.
Our experts have outlined these steps that small businesses can take to address the issue of revenue loss:
Step 1: Streamline registrations
Controlling revenue or billing revenue loss prevention isn’t the only benefit of streamlined registrations. Streamlined registrations allow for better record-keeping and retrieval, especially to ensure claim payment, or for audit purposes when business records may be reviewed.
Step 2: Look for claims that are incomplete or inaccurate
Incomplete paperwork and inaccurate records can hinder the claim application process. Claims not completed or paid translate into either no payment or an inordinately delayed payment for the healthcare business. Locating an incomplete claim application, or one that is not accurate, could help identify problem areas, and more importantly stop loss of revenue due to errors in the claim process.
Step 3. Streamline collection process
By far, one of the best ways to ensure the revenue stream operates uninterrupted is by enforcing practices that aid strong collection and accounts receivable (AR) management. For a small business, receiving professional help can streamline the entire process, including managing AR balancing and ensuring collection, automating invoice distribution, creating electronic payment methods, and setting up convenient and flexible payment schedules to ensure maximum payments. Electronic methods, or automation, eliminate human error to a great degree; every transaction is diligently recorded, regardless of value or volume.
Plugging the leaks
Outsourcing operations can provide the expertise needed to streamline operations and ensure prevention of billing revenue loss. Ideally, partnering with experts who can provide support in medical billing services and who possess proven systems and deep knowledge and understanding of the industry will help small businesses achieve sustainability. The right outsourcing company can also help plan a future strategy that is comprehensive and includes strong overall business management. A strong financial management system also helps sustain the business, boost growth, and attract stakeholders and investors.