You’re in the healthcare sector. That means you’re used to waiting what can seem like an endless amount of time to get paid, whether you take care of patients or supply the medical equipment to those who do.
In fact, the sector is notorious for its sluggish 47-day average days sales outstanding (DSO). You, as an industry insider, can pinpoint the wrench in the works: the time it takes to process insurance claims, which slows things down for every company along the supply chain.
Processing times vary greatly for several reasons, the most aggravating being insurers’ approval labyrinth. The backlog of unpaid claims can explode into an ugly mess that wreaks havoc on your bottom line.
Indeed, according to a PYMNTS Intelligence research report produced in collaboration with Billtrust, more than 37% of healthcare providers say they are waiting to be paid anything from $25,000 to $100,000, and another 32% are owed even more than that. Blue Cross Blue Shield leads the pack, accounting for 23% of the total amount owed by insurers to healthcare providers.
Automated healthcare claims management can help
Insurers require providers to present a large amount of detailed documentation to determine whether they’ll even reimburse services, which is a huge part of the delay. This is why smart providers realize that automated claims management can smooth this gnarly pain point.
A sizable majority get it: 70% of healthcare providers consider claims management more important now than before the pandemic, as 30% noted an increase in denial rates between 10% and 15% over the past year. So, more than half (52%) within the past 12 months have switched out their manual processes with technology that automates and streamlines the insurance claims process.
You can supercharge your efficiency even more by integrating other functions critical to the healthcare sector, such as compliance with privacy regulations, into a unified AR platform.
Reduce manual work, get paid faster, and deliver superior customer experiences with Billtrust’s unified AR platform.
Unified AR benefits for healthcare providers, suppliers and distributors
Healthcare providers aren’t the only ones to benefit from comprehensive automation. Medical suppliers and distributors can also use it to simplify complex transactions and focus on more essential initiatives.
Suppliers and distributors across industries can testify to the benefits of AR automation.
“By increasing digital adoption, we’ve significantly reduced customer calls asking for copies of invoices, which saves on the cost of the copies and the time it takes our AR department to respond,” says Brent Lundeby, credit manager for Dakota Supply Group, an electrical, HVAC and plumbing supplier.
Integrated EHR makes HIPAA compliance easier
Integrating electronic health records with billing systems and employing predictive analytics can also help healthcare providers identify potential delays in reimbursement.
With automated processing, you can also ensure you remain compliant with the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule, which protects the privacy of patients' medical records and other health information, as well as the Payment Card Industry Data Security Standard (PCI DSS), which protects the security of patients’ credit card information.
So, want to whittle down that atrocious DSO due to your intricate billing processes and a diverse payer landscape? Automate your claims management processes and leverage streamlined invoicing within a unified AR. Boost your performance even more by integrating electronic health records with billing systems, while maintaining HIPAA and PCI compliance. And predictive analytics can weed out troubling hotspots that are delaying payment.
Billtrust works with more than 120 medical companies, including medical devices and equipment, pharmaceuticals and pharmacies, healthcare services and elder care. Discover what we can do for you!
FAQs
Automated healthcare claims management streamlines the submission and approval process, reducing delays caused by manual documentation and insurer approval labyrinths. This leads to faster reimbursements and improved cash flow for healthcare providers.
Unified AR solutions offer comprehensive automation that simplifies complex transactions, enhances efficiency, and ensures compliance with privacy regulations. These solutions help healthcare providers manage their accounts receivable more effectively, reducing days sales outstanding (DSO).
AR automation helps medical suppliers and distributors reduce manual processes, save time, and focus on essential initiatives. By increasing digital adoption, these businesses can significantly reduce customer inquiries and improve overall operational efficiency.
Predictive analytics provide healthcare providers with real-time insights into their financial operations, helping to identify and address potential payment delays. These tools enhance decision-making and improve the accuracy of financial forecasts, leading to better cash flow management.