Healthcare accounting is complex, and there is a major disruption in the industry right now. As healthcare finance experts wrestle with value-based payments, fee for service models, price transparency, and more, the waters are muddied further by insurance companies, Medicare/Medicaid, and the sheer number of patients (44 million Americans) that are currently uninsured.
Healthcare Accounting
A healthcare accounting office is tasked with not only collecting payments from patients but also ensuring that patient’s insurance companies pay their bills. If those funds aren’t coming in, then a healthcare organization is very quickly unable to make ends meet, meet payroll obligations, or continue to remain in business to do the important work of diagnosing and treating patients. The system can easily collapse if the right measures are not put into place at the outset.
It is incredibly important that healthcare accountants are:
- Properly educated and trained on accounting processes
- Able to communicate well in peer-to-peer scenarios
- Following workflow protocol
Think of revenue cycle optimization as a supply chain: if one administrative staff member codes incorrectly, fails to perform a task, or makes an error in data entry, the entire chain suffers.
Potential Losses
Substantial loss of revenue can occur when accounting duties are not performed adequately in any industry, but healthcare accounting is extremely volatile. Note these frightening statistics: roughly 26 percent of claims are rejected, and up to 40 percent of those claims are simply never resubmitted.
To get back on track and to ensure the health of your healthcare organization’s finances, accounting staff should be trained on and follow a workflow to confirm patient eligibility, insurance status, and co-pay amounts, and staff members should be mindful of checking for missing charges and following up on claims.
Flexi can help your healthcare organization succeed
Streamline and automate labor-intensive financial management functions with Flexi’s easy-to-use accounts payable, general ledger, project management, and fixed asset solutions for various healthcare industries.
Throughout hospitals and across integrated delivery networks (IDN), Flexi’s solutions increase efficiency, improve accuracy, and reduce labor cost. When implemented as part of an integrated hospital system, there are added efficiencies and cost savings to help optimize your business operations. Try Flexi’s healthcare accounting software today to:
- Prevent shortfalls and missed margins with powerful analytic tools
- Improve information flow through multi-entity processing and a faster closing process
- Enhance regulatory compliance and security
- Eliminate duplicate data entry
- Reduce costs through enhanced project management and analysis.
Submit your information and get a demo of the Flexi suite today.