Business Office Optimization: How to Reduce Your Accounts Receivable
Does A/R management feel like a perpetual game of whack-a-mole? If your team is constantly jumping from one issue to the next without real progress, it might be time to rethink your approach.
With millions of dollars tied up in outstanding claims, hospital finance teams often struggle to balance priorities. Taking a “first in, first out” approach or investing in new technology isn’t always the answer. Hospital leaders need a strategy that prioritizes the right accounts, streamlines operations, and ensures every team member is working toward the same goal. Here’s how to take a more focused, strategic approach to A/R.
1. Focus On the Right Accounts
Not all outstanding balances are worth your team’s time.
If your team is spending too much time chasing small-dollar claims, they’re likely pulling resources away from the accounts that could have a greater impact on cash flow. It’s easy to get wrapped up chasing every unpaid dollar. But break the cycle, take a step back, and identify which accounts will truly move the needle.
Segment your A/R data by both age and dollar amount.?High-dollar accounts that are still within a relevant timeframe should be prioritized, while older or lower-dollar accounts may not be worth the internal effort.
2. Outsource to Vendors Where It Makes Sense
While some accounts may not be a priority for internal teams, that doesn’t mean they should be ignored.
Certain types of claims are notorious for slow processing times and extra administrative work. These cases include:?
Rather than dedicating limited internal time and resources to these tedious, time-consuming accounts, partner with external vendors who specialize in this work. An effective vendor strategy allows your team to focus on high-yield claims while preventing other accounts from slipping through the cracks.
Develop a vendor strategy that complements your internal resources, pursuing valuable pockets of dollars without overburdening your team.
3. Make the Most of Your Technology
Many hospitals have sophisticated electronic medical record (EMR) systems. But without the right configuration and business office optimization strategy, these tools can create more problems than they solve.?
The problem isn’t always the system itself — it’s how it’s being used. When workflows aren’t optimized, staff end up:
Instead of relying on manual prioritization and workarounds, let your technology do the heavy lifting. Leverage your existing systems to automate workflows, streamline processes, and provide clear visibility into A/R performance.
At Eclipse Insights, we take a deep dive into our clients’ operational systems, identifying opportunities to optimize workflows and team structures. Often, the solution isn’t replacing your system with something better —?it’s maximizing what you already have.?
The result of this work? Improved employee satisfaction, productivity, and cash flow.
Get a Handle on Your A/R
The key to A/R success is working smarter, not harder, and asking yourself the right questions to guide your strategy:
Eclipse Insights takes a holistic approach to business office operations, helping hospitals streamline their A/R strategy and resolve the hidden inefficiencies that cost time and money. If you’re ready to optimize your A/R strategy, reach out to learn how we can help.