Introduction
Medical billing is a process that requires a team of professionals having proficient in billing, coding, denial management, and ACCOUNTS RECEIVABLE handling. The financial stability of the medical center depends on maintaining positive cash flow and accurate payments over time. Despite following the guidelines, some claims might still need to be accepted or denied. This is where the AR recovery (accounts receivable) becomes crucial.
The team involved in AR recovery work on reopening denied claims to ensure the fulfillment of reimbursement from the third party, i.e., insurance providers. It has also been observed that a significant number of ‘denied claims’ are never reworked, which leads to unclaimed revenue for healthcare units.
This article highlights the importance of ACCOUNTS RECEIVABLE recovery in medical billing. Efficient account receivable practices rectify simple errors and lead to the recovery of lost revenue.
All healthcare units aim to improve their medical billing and coding efficiency. They need help increasing fast claims and reducing issues like claim delay or denial. But healthcare service providers are constantly facing problems like claim rejections and underpayments. Hospitals need to pay more attention to revenue collection due to neglecting denials and unpaid claims. However, with the help of ACCOUNTS RECEIVABLE recovery, these revenues can be recovered by removing loopholes in the billing procedures.
This process is known as AR Recovery. It involves practices like; persistent follow-up on denials until insurance companies fully reimburse. An influential ACCOUNTS RECEIVABLE Recovery technique helps in recovering payments for aging claims. The accounts receivable ‘Aging report’ is sometimes used as an efficient tool to categorize denied or delayed medical claims based on how long payment has been outstanding. This report helps healthcare-providing units prioritize and manage unpaid claims by identifying the pendency period of each claim.
The significance of the ACCOUNTS RECEIVABLE recovery process in medical practices lies in its role of tracking and managing all these outstanding claims. Generally, the longer period of unpaid claims leads to lower chances of successful reimbursement. This is because of the changes in insurance policies and disputes over time.
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This Blog was initially posted at Secure MSO On August 9, 2023.
