One of the most prevalent hotspots in a physical therapy clinic is accounts receivable. With high patient volume, recurring authorizations, and constant changes in payer rules, accounts receivable take longer to collect. As physical therapy AR challenges continue to creep up without being controlled, cash flow issues ensue, and staff time gets wasted on constant follow-ups.
Enhancing physical therapy AR is not a matter of working harder. Working smarter is the key. A proper structure will help improve payment cycles, lower write-offs, and allow them better control over their revenue.
Identify Root Causes of AR Delays for PT
To correct AR, it is important to have an understanding of why balances are aging. Some of the common reasons for an increase in PT in AR include:
- Missed or expired Authorizations
- Incorrect codes or modifications
- Incomplete documentation
- Eligibility errors
- Timely Filing Issues
- Responses from slow payers
Payer and service type tracking of denial reasons and delays provide insight into where problems exist.
Improve Front-End Billing Processes
Numerous issues in AR can begin with front desk operations. Problems with scheduling or check-in can come up again in unpaid claims in a matter of weeks. To reduce future AR:
- Eligibility and Benefits Verification Prior to Initial Office Visit
- Verify visit limits and authorization requirements
- Gather patient demographic information and insurance information
- Describe patient responsibilities early
Track Authorizations Closely
One of the key factors making AR in physical therapy challenging is authorization management. Omitted appointments or authorization dates, which have expired, may cause a patient’s claim to be denied. Best practices are:
- Real-Time Monitoring of Authorized Visits
- Notification of expiring authorizations
- Sharing information on remaining visits with therapists
- Requesting extensions before limits are reached
- Authorization tracking is proactive in ensuring revenue and continuity of care.
Submit Clean Claims Quickly
Timely and accurate claim submission is critical to proper AR management for PT. When claims are not promptly submitted, payment can be delayed and claims can be rejected. To streamline claims:
- Reviewing documents before billing
- Use claim scrubbing tools to detect errors
- Make submissions daily or at least an interval of a week
- Quickly check clearinghouse rejections
- A clean claim leads to quicker payment.
Enhance Patient Receivables
Patient balances have become a bigger part of outstanding accounts receivable in physical therapy settings. They can become obsolete in a short period if systematic procedures aren’t in place to handle them. To improve patient collections:
- Collect Copays at Check-In
- Provide online payment options
- Create payment plans for higher balances
- Effective communication assists in making patients understand and settle their share promptly.
When Outsourcing AR Makes Sense for Physical Therapy Practices
With increasing complexity in AR, a growing trend among practices is outsourcing physical therapy AR. Outsourcing to RCM Workshop could be very beneficial to practices struggling with staffing shortages or increased denial rates. Benefits may include:
- Dedicated AR follow-up teams
- Quick settlement of outstanding claims
- Compliancy with payer-specific rules
- Better cash flow without increasing in-house staff
- By outsourcing to RCM Workshop, in-house staff can focus on taking care of patients while ensuring financial viability
Streamlining accounts receivable is a critical function in ensuring good health for physical therapy practices. Streamlining physical therapy AR can be achieved through improving front-end operations in addition to ensuring claims are accurate by using data to follow up. Improved accounts receivable therefore leads to reduced stress in addition to ensuring quality patient service.
