Account Receivable Management

Improving your accounts receivable in healthcare requires active administration of your revenue cycle and communicating any process incompetence. Dedicating efforts towards optimizing administration, running AR reports, and tracking claims help providers in the healthcare practice recover what otherwise would be lost revenue.

Should aging accounts receivable begin to pile up, providers may wish to investigate outsourcing reimbursement collection to a trust organization to secure management office.

What is an Account Receivable?

A medical account receivable refers to the outstanding reimbursement owed to providers for treatments and services, whether the financial charge falls to the patient or their insurance company. Healthcare providers must stay on top of efforts to collect reimbursement for their AR account.

The longer the immaturity of AR goes, the less likely healthcare providers receive payment timely, clinicians can only expect ten cents per dollar owed.

The AR cycle starts when healthcare providers bill a patient or their insurance company. Despite indicating money owed, ARs do not qualify as assets. Providers typically classify accounts receivable in terms of their time of life: