How AI Can Optimize Accounts Receivable Management

The pressures on healthcare providers – from labor shortages to rising costs to reimbursement delays – continue with little relief in sight. According to an AHA and Syntellis report, half of the 1,300 hospitals and health systems surveyed reported $100 million in Accounts Receivable (AR) for claims older than 6 months. Moreover, from January 2022 to June 2023, the median health system’s drop in cash reserves was 28% and the number of days cash on hand dropped from 173 to 124 days.The constraints on both cash flow and cash reserves can have significant impacts. Case in point: The unforeseen Change Healthcare outage left many organizations struggling to cover expenses, even payroll, when payments were held up for weeks. Even without such a disruptive event, difficulties forecasting revenue and cash flow can harm an organization’s ability to provide high-quality patient care, plan for growth, and manage costs – which can ultimately erode patient trust and satisfaction.