For healthcare organizations with an inefficient A/R infrastructure, billing is usually delayed or are often inaccurate. This can lead to a reduced bottom line alongside worsening your patients relationship with your hospital when inefficiencies occur. Without the acceptable A/R structure, administrative issues and redundancies may exist which will have a significant impact on the efficiency of your hospital.
On average, 70-80% of patients owe a minimum of $500 to their healthcare providers. More than 45% of patients owe $1000. If a bill is not eventually paid or settled, the expense of treatment will never be recovered or paid. Is it inevitable that you incur this loss?
- Are your current accounts receivable percentages low?
- Does your business often receive payments that are late or inaccurate?
- Do you want to see an improvement in the overall efficiency of your accounts receivable operations?
If yes, what your business needs is outsourcing. Optimizing your spend management structure can lead to a greater cash flow that is collected faster and at a steadier rate, all the while maintaining a higher standard of service with your patients. There are five primary benefits to outsourcing A/R services.
1. Reduces Administrative Overhead and Costs
By outsourcing the labor associated with accounting fees, you can significantly reduce your expenses for both your IT and HR departments. Decreasing training costs of employees as well as mitigating costs usually associated with up-front investment can add up in terms of administrative overhead. This is sure to cut down on your administrative overheads on many fronts. In addition to that, it saves on costs because you no longer need to have an AR department within your organization. There is no need for equipment or office supplies for a non-existent team. You can utilize the money and time saved through outsourcing for improving your marketing, sales or research, and creating stronger relationship along with your customers.
2. Streamlines Billing and Payment Processes
Outsourcing your accounts receivable department can streamline your billing processes in several ways. Dedicated automatic payment services may be available that can free up your employees time and increase efficiency. By outsourcing accounts receivable, you get prompt access to dedicated resources, which in turn will free up talent in your organization. You can put your employees’ time to better use and get them to help finish tasks that really matter to the organization. Outsourcing helps streamlining the billing and other related processes and increase accuracy, timeliness and overall efficiency.
3. Faster Collections
According to research and surveys, if an account becomes 90 days overdue, there’s a probability that the vendor company will receive only 73 cents on every dollar owed. The longer you take to collect an overdue account, the lesser money your business will be able to recover. Also, as your accounts start becoming overdue by a month, 90 days or a year, you’ll be losing more and more. An outsourcing company will be able to collect faster, so that you can close your books and save on cost. That way you will not lose control of the AR and payments related processes either.
4. Customizable Solutions
The companies offering accounts receivable services are extremely proficient in delivering quality services. The offshore A/R firms can work for you in other ways aside from the typical accounting practices. With experience and systems dedicated to the management and consolidation of documents, data can be collected and reported to give a customized view of you’re A/R status and ageing.
5. Refocus on the Necessities
Managing an in-house team is way harder than handling an outsourcing company. For managing and maintaining an in-house accounts receivable team, you’ll have to hire staff by first advertising your requirements and then interviewing the applicants. Also, businesses need to grow and sustain the growth for longer periods. This requires a significant focus on three key aspects of business strategy – customer service, marketing and R&D. Handling AR in-house is usually time-consuming and takes away key staff from business-critical activities. Also, its observed that the challenging nature of debt collection tends to lower employee morale when done in-house. By outsourcing Accounts Receivables, you’ll let your staff concentrate on critical growth activities that contribute to sustainable businesses and improving employee morale.
By streamlining the A/R process with a dedicated infrastructure, outsourcing can provide a multitude of advantages compared to performing the work in-house. This infrastructure often takes a large amount of time and expense to instigate and is not always possible for smaller healthcare organizations. The increased efficiency offered by this infrastructure means that redundancies can be eliminated, problems are handled more effectively, and cash flow is maximized for the benefit of both your practice and your patients.
Outsource accounts receivable management services to Viaante. At Viaante, we have an accomplished workforce who has the ability in taking care of both the old and new accounts receivables of worldwide healthcare groups. By outsourcing to Viaante, your association can save money on valuable effort and time.