The accounts receivable services involve an elaborate process flow of analyzing multiple documents on insurance claim and reimbursement, collection, write-offs, and bad debt. Dynamic regulations and frequent changes in insurance coding makes the process all the more painful. Any errors in the process takes a direct hit on an enterprise’s net revenue. This has prompted enterprises to rely on the skills of third-party accounts receivable services providers. On this note, here’s looking at the top 5 benefits of outsourcing this service:
Minimum operational overheads– Maintaining an in-house accounts receivable services team entail investments on multiple fronts such as hiring and training costs, infrastructure costs, and salaries and benefits. Outsourcing this service to a third-party provider will open access to qualified professionals and the required technology at no additional costs. Expert third party vendors have the necessary strategy in place to reduce the expenditure on processes like invoicing. Such trimming of expense has a direct positive impact on their service charge.
Payment and billing process in order– An accounts receivable services provider takes the end-to-end responsibility of executing the process in an accurate way. The service provider has the necessary tools to execute all the mobile payments and electronic transfers and mobile payments without the client’s intervention. The availability of multiple payment options allows customers pay the bills even before the due date. An accounts receivable services provider integrates the billing and payment processes to optimize collection and spend management. They begin the process with claim processing and billing for a patient’s co-pay. They ensure the insurance coding, billing process done, and get the claim notification within an accepted timeline. In case of any delay, their automated payment and billing system issues a warning and flags the issue right ahead in the queue.
Expedited collection process– Outsourcing accounts receivable services to a third-party vendor can reduce days sales outstanding to 15 days. A reduction of DSO effectively frees up money and time that can be allocated on other priorities. Longer time taken to settle overdue accounts will result in lesser money recovery. An accounts receivable services provider is expected to leverage automation to expedite a major portion of this process to accelerate closing accounts and expedite the collection process.
Better control– A third party accounts receivable services provider is expected to provide constant updates on the AR handling progress. This keeps the client informed beforehand on the possibility of a choked cash flow resource. Such early insights help them to identify the issue that led to the blockage and settle the account before it takes a more complicated turn.
Consumer screening– A third party accounts receivable services company has a team who is specifically dedicated to execute AR collection process. This being their core duty, the team is expected to clearly outline credit policies and assess consumers’ creditworthiness. This will help the client to have foresight about a particular consumer’s ability to pay within the agreed time.
While there is no more doubting about the significant advantages of outsourcing accounts receivable services, enterprises must do a careful evaluation of the prospective vendors before finalizing the partnership. A streamlined process flow that covers steps like outstanding claims follow-up, collection initiation, denial cause follow-up, superior technology, a consistent communication channel, flexible engagement models, HIPAA compliance are some of the parameters that must be given due weightage before entering into a partnership with an accounts receivable services provider.