Start Smart! Split Remits to Match and Relieve A/R

September 07, 2017 By: Quadax

When the day does not end until lockbox receipts are balanced, you need the power of remittance management tools. Smart remittance processing starts by splitting remittance files and comingled funds to the right system so deposits can be balanced, payments posted, and the A/R reduced.

The value of lockbox processing is that it allows for same-day deposit of payments. But what happens after? How does your staff manage lockbox balances and files to correctly split comingled data from multiple entities and post to the right system? Lockbox contents can be a mixed bag: paper and electronic; payer and patient; checks, EFT, VCards, and credit cards; EOBs and correspondence; and other, just to name a few. Adding to this complexity the fact that many healthcare organizations have more than one system, and the task of balancing becomes a “search and find” mission. 

Accounting is clear, one plus one will always equal two. But when you start with the deposit of two, finding the associated “one plus one” among a batch of comingled, multi-sourced data isn’t accounting, it is operational management.
railroad-diverging-simulating-splitting-remits


Data flow that supports work flow.

Intelligent automation can help you streamline your accounting operations. A remittance data management solution can help you split remits to get the right data into the right system’s work flow. 

Running un-split 835s against multiple systems can be inefficient, resulting in large kick-out volumes occurring in each system. Not only are these volumes burdensome, requiring a manual process to clear them, they can bury the remittance transactions that truly need your staff’s intervention to proceed. By applying exclusive splits upfront, the right data flows to the right system, and only that system. Redundant handling is eliminated and exceptions can be readily identified and worked.

Remits can be split in a variety of ways. The best solutions use patient account number as one of the key data filters. In a multi-system, multi-service healthcare organization, one patient can have multiple account numbers—where each system in the organization generates a unique patient account number. Creating a custom algorithm that uses this unique patient account number in the file splitting logic can ensure that the remittance transaction data is sent to the right system so that a match can be found and efficiencies gained.

With the industry’s increased merger and acquisition activity, many healthcare organizations are facing the need to support legacy systems or incur the high-cost of conversion. If your organization is in this situation, consider implementing a remittance splitting strategy. You can control your data flow and maintain each system’s revenue integrity while saving time and money.

Posting files to match.

After remits are split, posting files are created. Based on how your accounts receivable (A/R) is structured, posting files can group remittance transactions by system, by payment category, and more to help staff balance the day’s deposits. As a healthcare provider, your A/R is unique. When selecting a remittance management solution, find one that understands your accounts receivable and get the balancing tools your staff needs. Consider the value of a matrix reporting tool where your staff can balance once to the day’s deposit and then to each system within minutes.


Relieve your A/R…
and your staff.

Once balanced, your remittance processing should allow for automated accurate and organized posting, adjustments, and follow-up in coordination with claims management, denials and appeals management, and business analytics. With the right solution, your remittance management can be a highly-functioning, results-oriented operation.

 

RemitMax by Quadax offers a full remittance management solution. Working with you, our RemitMax team engineers your remittance data flow to support your work flow, relieving your A/R… and your staff. Learn more about reimbursement management solutions by Quadax.

 

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