For those new to the term days sales outstanding (DSO), it's a measure of the average number of days that it takes a company to collect payment after a sale has been made. In the case of our topic, how long it takes a hospital to receive payments from patients or their insurance companies. Now that we got that out of the way, let's dive in!
Timing and efficiency is crucial in maintaining DSO. That's why clinical documentation is so important. It not only grants insight into time-to-bill and confirmed billing, but also helps to eliminate the use of clunky hospital portals and medical record requests. This more efficient and streamlined process helps billing companies reduce chart lag and improve and maintain DSO at the same time.
Improving DSO is a long-term commitment. As they say, nothing great happens overnight. A fix to this problem is committing to letting your data work for you. Through workflow customization and validation of CPT levels, account numbers, and date-of-service, the leg work for billing companies is drastically reduced. Reducing DSO requires changes to inefficient habits as much as it does to administrative processes and procedures. We like to call this Charge Review.
Monitoring DSO Initiatives
Visibility into current processes can't be overstated. Any concerted effort to reduce DSO must begin with data on current statuses. Once data can be collected, bench marking analysis that shows how that level compares to peers and competitors can help track improvement or drop-off. From there, you can make any adjustments as needed.
MediMobile is actively improving health organizations' and hospitals' DSO.
You can learn more about how below!