Wipfli: Healthcare organizations may overlook earned revenue
Audit and consulting firm Wipfli indicates that healthcare organizations might be overlooking revenue they have already earned. Key areas for improving cash flow include preventing revenue leakage, protecting earned revenue, and prioritizing recovery.
Healthcare organizations are facing continued pressure on margins, staffing, and cash flow. Audit and consulting firm Wipfli has released a report highlighting that many organizations may be overlooking significant revenue that they have already earned.
The report identifies three primary areas where healthcare organizations can improve their cash flow. Firstly, preventing revenue leakage is critical. This involves ensuring processes are in place to bill for services accurately and on time, avoiding errors that lead to lost income.
Secondly, organizations must focus on protecting revenue that has already been earned. This includes verifying payers before services are rendered and ensuring all necessary pre-authorizations and approvals are obtained. This minimizes the risk of services going unpaid.
Thirdly, an effective recovery strategy is essential. Wipfli urges organizations to prioritize actions that expedite the collection of outstanding payments. This can involve using automated reminders and establishing clear processes for tracking and recovering overdue accounts.
Wipfli states that proactive management of these areas can assist healthcare providers in enhancing their financial stability within a continuously evolving operational landscape.