The term 'Accounts Receivable' or A/R denotes the money owed to physicians, hospitals or nursing centers for services rendered and billed. This money could be owed by patients, payers and/or other guarantors. Every health care provider has to manage the A/Rs effectively and efficiently to get paid appropriately and on time to avoid snags in the cash flow. This also determines the financial strength of the health care provider. A non-managed A/R could spell a disaster in disguise destroying a successful practice.
The A/R team is responsible for collections (co-pays and deductibles). In case of rejections, it analyzes denied claims, partial payments and/or non payments. After further corrections, verifications and charge entry the A/R team re-submits the claim and communicates with the payer for faster approvals and payments. Certain issues can cause A/Rs to pile up delaying payments. Though some can be prevented with corrective measures, some are unavoidable. They are:
Other reasons for account receivable pile ups are delayed billing, flexible payment plans or lack of IPA information. Hiring a billing specialist or a billing company can avoid delays and mistakes, enhance payments and increase cash flow thereby allowing the physician to concentrate on patient care.