3 takeaways on implementing a cash flow turnaround

Zinserv Healthcare, a revenue cycle consulting firm, recently put together a guide for hospitals to implement a cash flow turnaround.

Here are three takeaways from the guide.

1. Reasons for lost accounts receivables. Zinserv President Jim Yarsinsky identified the following five biggest reasons for lost accounts receivables:

  • Third-party payers
  • Outdated skills and resources
  • Lack of internal controls
  • Small balances and outsourced accounts
  • Inaccurate registration information

2. Remedying the cash flow problem. Once the root cause(s) of a problem are identified, there are 12 steps hospitals can take to turn around cash flow, according to Mr. Yarsinsky. Some of these are doing an operational review that includes examining billing systems, accounts receivables, staffing levels and other areas, as well as coming up with an action plan. Other steps include a more aggressive approach in collections, making efforts to boost employee morale, and stepping up benchmarking practices.

3. Track key performance indicators. During a cash flow turnaround, track KPIs including days in accounts receivable, percentage of unpaid invoices, clean claims rate and the percentage of denied insurance claims, according to Mr. Yarsinsky. He recommends hospitals target a clean claims rate greater than 97 percent.
 
Read the full guide here.

 

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