Accounts Receivable in Medical Billing
Accounts Receivable in medical billing is retrieving of payments due by the insurance and patients to the physician for the delivered services. For the long-term financial sustainability of your practice, it’s crucial to keep accounts receivable under check. Accounts receivable are categorized as the number of days the payment hasn’t been received.
The accounts receivable are categorized into five aging buckets, 1 to 30 days past due, 31-60 days past due, 61-90 days past due, 91-120 days past due, and 121 days and above. Any practice having efficient billing operations will have fewer accounts receivable in 91-120 days, and 121 days and above days bucket.
Most insurance companies will make the payments within 30 days of claim submission. Even with claim denials and rejections, you can receive insurance payments within 60 days of claim submission. So, accounts receivable in 60 days and above the AR bucket might represent the inefficiency of the billing team. As working on accounts receivable is challenging, we discussed the benefits of outsourcing accounts receivable in medical billing.
Outsourcing Accounts Receivable in Medical Billing
Healthcare practices have a huge amount of AR in 60 days plus buckets due to various reasons. The prime reason is not having an experienced denial management team who can tackle claim denials at the source. Hiring and retaining skilled billing, coding, and AR professional could lead to huge expenses for any healthcare practice. Outsourcing accounts receivable in medical billing is an efficient, cost-effective, and practical way.
Medical billing companies have billing, coding, and AR experts who have experience with billing insurance companies in your area. When you outsource accounts receivable, you don’t need full-time employees. Plus medical billing company will charge you on a percentage basis of the accounts receivable amount recovered.
Benefits of Outsourcing Accounts Receivable in Medical Billing
Medical Billers and Coders (MBC) is a leading medical billing company providing complete revenue cycle services. Along with other billing services, we also provide accounts receivable services which include cleaning up old AR for any healthcare practice.
Some of the benefits of outsourcing accounts receivable to us include:
Providing financial stability:
We help you to quickly recover accounts receivable. The financial stability of any healthcare practice is highly dependent on steady payments. Our efforts in collecting accounts receivables provide a steady flow of reimbursements that covers day-to-day practice expenses.
Claim status for every single submitted claim:
Our team gets claim status for every single submitted claim. We use every possible contact channel to get claim status including the provider portal, billing software, and phone. Every single claim is marked as paid, partially paid, denied, and under process. Payments of paid claims will get updated in billing software while denied and partially denied claims are marked for denial management.
Receive quicker denied payments:
The primary objective of our accounts receivable management is to minimize the number of days required to receive reimbursements of denied claims. As practices receive quicker payments, it contributes to steady revenue cycle management.
AR aging report:
We share the AR aging reports weekly or monthly basis as per practice requirements. An AR aging report (or a report that breaks down the number of debts and how long they’ve been outstanding) will help to understand, what accounts are delinquent and for how long. This can help you get ahead of any problems with habitual late-payers and gives you the opportunity to intercede with collections or discontinue providing services to avoid credit risks.
No need to hire a team:
With our accounts receivable services, you won’t have to hire billers, coders, or AR callers to work on outstanding AR. Medical specialty-wise, experienced billers, coders, and physicians form our denial management team. They review each and every single denied claim, understand the remarked codes, and appeal with corrected and/or more information.
It’s cost-effective:
As you are not hiring billing and coding resources, it saves a considerable amount on payroll and training expenses. We charge a percentage basis only on the amount recovered from the insurance company.
We hope that provided information is sufficient to understand the benefits of outsourcing accounts receivable in medical billing. To know more about our accounts receivable services, email us at: info@medicalbillersandcoders.com or call us at: 888-357-3226.
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FAQs:
Q: What is Accounts Receivable (AR) in medical billing?
A: AR in medical billing refers to the payments due from insurance companies and patients to healthcare providers for services rendered. It’s important to manage AR efficiently to ensure steady cash flow for the practice.
Q: How are Accounts Receivable categorized?
A: AR is categorized into five aging buckets: 1-30 days, 31-60 days, 61-90 days, 91-120 days, and 121+ days past due. Efficient billing practices result in fewer AR days in the 91-120 and 121+ buckets.
Q: Why do practices have high AR in the 60+ days category?
A: High AR in the 60+ days bucket is often due to a lack of skilled denial management teams that can address claim rejections and resolve issues promptly.
Q: What are the benefits of outsourcing AR management in medical billing?
A: Outsourcing AR management is cost-effective, ensures quicker claim status updates, reduces denied claim resolution times, and provides financial stability without the need to hire in-house staff.
Q: How does outsourcing AR improve cash flow for healthcare practices?
A: By outsourcing AR, practices can recover payments faster, maintain a steady revenue stream, and avoid the overhead costs associated with managing an internal billing team.
Q: What is an AR aging report, and why is it important?
A: An AR aging report tracks outstanding claims by age. It helps practices identify delinquent accounts, take corrective actions, and manage credit risks more effectively.
Q: How is outsourcing AR management cost-effective?
A: Practices save on payroll and training expenses by not hiring in-house billing staff. Medical billing companies charge a percentage only on the amount of AR recovered, making it a cost-efficient solution.
