Strategies for Managing Wound Care Claim Rejections (Legacy AR)

Several healthcare practitioners in the United States often struggle to manage wound care claim rejections—resulting in unpaid payments from patients or insurance companies. These unpaid bills are stacked up into the accounts receivable (AR) ledger.

However, growing unpaid payments can become increasingly challenging to collect over time due to changes in billing systems, errors, or other issues.

Understanding Legacy AR

Legacy Accounts Receivable (AR) refers to outstanding balances owed to healthcare providers by patients or insurance companies for services rendered in the past. These balances, having aged beyond the typical billing cycle, require special attention.

Several factors contribute to the accumulation of legacy AR in wound care billing, including:

  • Inaccurate Billing: Errors in coding, documentation, or submission delay reimbursement.
  • Denials and Rejections: Insurance companies may deny or reject claims, necessitating additional follow-up.
  • Patient Responsibility: Unpaid copays, deductibles, or out-of-pocket expenses contribute to outstanding balances.
  • Complex Reimbursement Processes: Complicated rules and regulations in wound care billing can lead to payment delays.

Legacy AR - MBC

3 Major Consequences of Unresolved Legacy AR

Failing to address legacy AR promptly can have significant repercussions, such as:

1. Financial Strain:

Unresolved balances affect cash flow and revenue cycle management, hindering operational efficiency.

2. Compliance Risk:

Non-compliance with billing regulations can result in penalties or audits.

3. Patient Dissatisfaction:

Unresolved balances may lead to patient dissatisfaction and damage the hospital/practice’s reputation.

6 Effective Strategies for Avoiding Wound Care Claim Rejections and Managing Legacy AR

To ensure timely clearance of legacy AR, hospitals can adopt several effective strategies:

1. Regular Audits:

Regular audits are essential for ensuring the accuracy and completeness of billing records. As per the Healthcare Financial Management Association (HFMA), routine audits can help identify and recover up to 20% of overlooked revenue. By analyzing old AR, hospitals can prioritize older accounts for follow-up and resolution.

2. Improved Documentation:

Accurate documentation enhances revenue recovery and compliance with regulatory requirements. Proper medical coding and documentation can minimize wound care claim rejections and avoid discrepancies. Moreover, implementing electronic health record (EHR) systems can streamline documentation processes, reducing administrative burdens and improving accuracy.

3. Proactive Follow-Up:

The American Academy of Family Physicians (AAFP) reports that proactive follow-up can increase collection rates by up to 25%. Hence, establishing dedicated follow-up teams and implementing automated systems can track and prioritize resolving outstanding accounts in wound care billing.

4. Patient Engagement:

Engaging patients in their financial responsibilities is vital for reducing self-pay AR and improving revenue recovery. Educating patients about their financial obligations and offering payment plans or financial assistance programs can incentivize timely payments.

5. Streamlined Processes:

Efficient wound care billing processes fast-track reimbursement and reduce the chances of accounts aging into legacy AR. As per the Medical Group Management Association (MGMA), healthcare practices with efficient billing and coding processes collect over 95% of their accounts receivable. Also, implementing automated claim submission and Electronic Remittance Advice (ERA) processing can further avoid wound care claim rejections.

6. Outsourcing Revenue Cycle Management (RCM):

Outsourcing RCM to specialized companies can significantly improve collection rates and reduce wound care claim rejections. As per the Black Book Market Research, outsourcing can increase collections by up to 15% and reduce AR days by up to 30%.

Partnering with reputable companies such as Medical Billers and Coders (MBC) helps wound care providers to offload administrative tasks, minimize wound care claim rejections, and follow complex billing regulations efficiently.

How MBC Can Help Recover Your Legacy AR:

Wound care claim rejections can strain your practice’s finances and operational efficiency. MBC can help you recover outstanding balances in legacy AR.

Benefits of MBC for Avoiding Wound Care Claim Rejections

  • Expert Team: Skilled professionals in medical billing and coding ensure accurate claim submission and follow-up.
  • Advanced Technology: Utilizes advanced software and databases to efficiently track claims and appeals.
  • Speedy Payments: MBC helps you get paid faster by reducing the time spent on claim processing and follow-ups.

Don’t Let Wound Care Claim Rejections Burden Your Legacy AR!

Streamline your wound care practice by outsourcing medical billing services from MBC and experience a visible reduction in claim rejections. Contact Medical Billers and Coders today for a free consultation: or call 888-357-3226.


Q: What specific documentation improvements can reduce claim rejections in wound care billing?

A: Accurate and detailed documentation of wound care treatments, including wound size, depth, and type, is crucial. Proper coding and thorough documentation of medical necessity help ensure claims are processed smoothly without delays or denials.

Q: What are the benefits of using advanced billing software and EHR systems?

A: Advanced billing software and electronic health record (EHR) systems streamline the billing process by automating coding, reducing errors, and facilitating better communication between healthcare providers and billing departments.

Q: What impact does outsourcing RCM have on a wound care practice’s operational efficiency?

A: Outsourcing revenue cycle management (RCM) enables wound care providers to focus on patient care while experts handle billing processes, leading to improved collection rates, reduced AR days, and enhanced operational efficiency.