The changing employee and staffing environment is creating challenges with AR management during a time when cash flow is becoming more important than ever.
The age of insurance receivables is a measure of how long it takes for hospitals to collect payments from insurance companies. The average age of insurance receivables can vary widely for hospitals depending on various factors such as size of the hospital, payer mix, location and efficiency of revenue cycle management.
That being said, the Healthcare Financial Management Association (HFMA) recommends that insurance accounts receivable (A/R) over 90 days or more should not exceed 30% of total A/R for any hospital.
According to the "HFMA MAP Keys: Revenue Cycle Performance Metrics - Definitions and Calculation Standards" publication, the average age of hospital insurance receivables in days should be 38.4 days (around 5.5 weeks) or less. This means that, on average, it should take hospitals approximately 5.5 weeks or less to collect payments from insurance companies.
It is worth noting that the average age of insurance receivables can vary depending on the type of insurance (e.g. Medicare, Medicaid, private insurance), the financial health of the hospital's patient population and the payer mix, as well as the efficiency of the hospital's revenue cycle management process.
If you are having challenges managing your receivables due to staffing or other reasons, we would like to help. Titan Health has experienced staff, workflows, and expertise to assist with your aging accounts. We will work with you to find a successful cost effective process to meet your AR goals or other Revenue Cycle needs. Contact Titan Health today, and let's talk about how we can help you.