Maintaining Cash Flow in Medical Bookkeeping

Medical bookkeeping requires industry specific knowledge, working with insurance and third-party billing companies, and preparing financial information for your board. Today we’ll focus on cash flow so you can provide accurate data to your CPA and board.

• Healthcare practices have to navigate the explanation of benefits (EOB) - the insurance company determines how much of the cost of a procedure they will cover and how much is the patient’s responsibility, making your practice collect from two different sources for each bill, which can slow the process down.

• For consistent cash flow, bill promptly for each procedure and use the proper current procedure terminology (CPT) code to avoid delays or undercharging for services.

• One report you’ll want to run regularly to improve cash flow is your account receivable aging report. This way you can pursue any account that is more than 90 days out of date. Running these reports frequently and following up with late accounts will help you keep your cash flow on track.

We know running a busy healthcare practice is hard work and there’s only so much time in the day to keep track of things like bookkeeping. But keeping up with your books is essential to running a successful practice. If you want to focus on doing what you do best and outsource bookkeeping, we are here to help. Get a free estimate here.