4 Common A/R Mistakes HME/DME Providers Make and How to Avoid Them

In HME/DME, accounts receivable (A/R) management ensures timely and accurate payment collection, but many companies struggle with this process. With multiple stakeholders involved—patients, insurers, and staff—each interaction impacts cash flow and profitability.

A/R mistakes are common and can significantly affect your bottom line. Preventing these errors is essential, but first, you must understand what they are and why they happen.

Top 4 A/R Mistakes Hurting Your HME Business’s Cash Flow

Capturing Incorrect Patient and Insurance Information

The intake process—the first patient interaction—initiates the revenue cycle. Accurate information during registration and order placement is crucial for effective A/R management, ensuring smooth billing and reimbursement.

Errors in patient demographics or insurance verification can lead to denied claims, forcing providers to restart the process. This delays reimbursement and frustrates patients, who may receive unexpected bills or repeatedly provide the same information.

Managing Claims Manually

Claims management requires robust systems for data collection, communication, and denial management, yet many providers still rely on manual processes. Tasks like claims scrubbing and follow-ups often lack automation, increasing the risk of errors and inefficiencies.

For instance, a survey by AKASA found that 62% of U.S. health systems do not automate denial management. As a result, over 20% lose more than $500,000 annually due to flawed denial processes.

Not Resubmitting Denied Claims

Claim denials aren’t final—payers allow time for resubmission. However, many billing teams, overwhelmed with new claims, don’t rework denials.

As a result, up to 60% of rejected claims go unaddressed and become write-offs. This unnecessary revenue loss directly impacts providers’ bottom lines, reducing financial stability and profitability.

Overlooking Claims Analysis

Denials are part of the claims process, but they’re often preventable. Providers must analyze claims to identify issues before they cause payment delays or rejections.

The problem is that manual billing processes are reactive, addressing denials only after they occur. Without proactive claims analysis, patterns and root causes go unnoticed. This results in slower reimbursements, higher administrative costs, and lost revenue opportunities.

A/R Automation: The #1 Solution

To get mistakes and inefficiencies out of the way, the top solution is automation.

Software solutions that automate A/R tasks can address all of the common issues that hinder smooth revenue cycle management.

• They allow the electronic exchange of data between providers and payers, reducing manual errors and accelerating processing.
• They can send scheduled follow-up reminders to insurers and patients, ensuring timely payments.
• They automatically initiate appeals in case of denials, increasing the likelihood of claim resolution.
• They have built-in analytics that track and analyze claim data, enabling providers to address issues proactively and reduce future denials.

Providers can develop automation solutions in-house, but many prefer outsourcing. HME/DME accounts receivable management services offer advanced technology without the burden of developing systems, ensuring efficiency and streamlined revenue cycle operations.

Other Tips to Improve Your A/R Process

The cost of denials and late payments is too great to ignore. Here are a few more tips for a more comprehensive strategy toward faster collection and better cash flow.

• Appeal denials promptly. Rejected claims are recoverable. Just as a billing team works on new claims daily, the same must be done with denials to maximize reimbursement.
• Regularly retrain staff. A/R isn’t solely on billing. Training front-end staff, coders, and clinicians in accurate intake and documentation helps minimize denials and delays.
• Empower patients through financial counseling. With high-deductible plans, patients pay more. Clear billing and multiple convenient payment options help manage expenses effectively.

ACU-Serve’s A/R Collection Services

ACU-Serve goes beyond traditional software solutions. We combine our powerful proprietary analytics tool, ACU-Insight, with advanced methodologies and expert support to deliver exceptional results for HME companies.

• Software Optimization: We optimize whatever software you’re using so that you can maintain accurate pricing tables, payer setups, quantity limits, and billing codes.
• Claim Tracking and Queueing: ACU-Insight monitors every touchpoint of a claim and queues it based on priority so that urgent and complex claims receive prompt attention.
• Onshore Support: Access expert assistance for complex cases, quality assurance, and comprehensive education and training.
• True End-to-End Service: From intake and claims processing to payment posting and reporting, we handle every step of the revenue cycle for seamless A/R management.

Takeaway

Preventing A/R mistakes improves collections and accelerates payments. Leveraging automation from registration to denial management helps HME companies reduce administrative burdens, cut costs, and enhance patient relations.

Optimize A/R management with ACU-Serve’s end-to-end solutions. Our advanced technology and expert onshore support streamline processes, reduce denials, and boost revenue cycle performance.

Schedule a free consultation today to discover how we can help maximize your efficiency!