New York -- September 26, 2017
Cash flow management can be a daunting task for any home care agency administrator or owner. Delayed payments from payers, insurance companies, managed long-term care plans can devastate any company operation if not run it into the ground.
As A. Marcum mentioned in his recent post named Growing Your Home Care Business through Effective Cash Flow Management: “At its simplest, cash flow management means delaying cash expenditures for as long as possible while encouraging those who owe you money to pay it as quickly as possible. Although it seems simple enough, managing cash flow can be an intricate and complicated process that greatly influences the success of your business. As the saying goes: “Revenue is vanity, cash flow is sanity, but cash is king.” While large inflows of revenue from sales are important for growth, managing your cash flow is essential for sustainability. Cash flow measures the day-to-day health of your company, and managing it properly means you have the cash you need, when you need it.
In the home care industry, it can be particularly difficult to manage your cash flow since providers bill in arrears. This form of billing is easy to track, but oftentimes, it is draining on your revenue since your employees get paid before you receive payment from clients or their insurance companies.”
1. Minimize Billing Cycle
One way to secure consistent revenue is to ensure that you always have money on hand in between billing cycles. You can achieve that by minimizing billing cycle when your completed patient visits being pushed into billing and out to your payer by a home care software like Carecenta that offers to a home care agency electronic visit verification (EVV) in combination with a shortest billing cycles by using multilingual telephony and GPS-based sign-in, and electronic billing with all major clearing houses like MDOL, Mdeon, McKesson MCO linked to the payers such as Medicaid, insurance companies and managed long-term care plans (MLTC).
2. Track Cash Flow Real-Time
As A. Marcum states in his article “It is wise to have an overview of your cash flow to make sure you don’t encounter periods when your costs are greater than your income. An accurate cash flow projection can warn you of trouble long before it strikes.”
Carecenta provides real-time overview of your cash flow by displaying the cash flow information on administrator’s dashboard.
3. Minimize & Speed Up Rebilling
Re-billings can be cash flow killers for a home care agency. How can you avoid rejections? One way is offered by Carecenta Billing when potentially rejectable invoices are brought to the attention of a biller for additional verification.
The relationship between expenses and revenue is complicated, however, when managed correctly, it opens the doors to unprecedented growth and profitability.
To learn more, review Carecenta demo at www.carecenta.com/pg/demo