LOW BALANCE QUICK HINTS
1. DELIBERATELY ALLOCATE RESOURCES
The proportional value of small balance accounts to the amount of AR $ associated is very small.
This makes it critical to ensure you do not sacrifice the collections opportunity on your high $ accounts in order to work the large volume of low balance accounts.
Recognize the value in collection of your low balance accounts, and adopt an intelligent, organized approach to their collection.
2. IDENTIFY “DEADWOOD.”
One challenge is that many accounts are older than the contractual timely filing and appeals limits.
However, these accounts may still be collectable, so it requires you to be diligent in your analysis.
Don’t “throw the baby out with the bath water.” Analysis of your uncollected low balance claims will divide those accounts between two buckets: uncollectable, or “deadwood,” and collectable opportunities.
3. WORK “BY ISSUE”
By working “issues” rather than accounts, you will see more efficiencies.
Spending time analyzing your receivables -- to string accounts together that have the same issue -- is almost always faster than individually troubleshooting accounts one-by-one-by-one.
Additionally, it will be tremendously helpful to identify upstream process failures.
4. FIX UPSTREAM PROCESSES
A focus on the small volume of high dollar accounts can identify acute – though generally isolated -- problems.
However, by focusing on the high volume of low dollar accounts systematic, process-driven issues are revealed.
Prevent future cleanup projects by taking action today to resolve upstream errors.
Mining the data and collecting feedback on low $ projects generally highlights processes that require attention, such as insurance verifications, authorizations, billing edits, payer processing issues, etc.
5. LEVERAGE AUTOMATION TO YOUR ADVANTAGE
Modern automation tools are an increasingly common way to let technology process large volumes of claims.
Remember that establishing a more efficient process takes some effort, time and expertise, but has significant long term benefits in terms of efficiency and collection.
Systems that institute a tool which automates both the analysis and collection of low balance accounts can see an increased collection of 1% Net Revenue.