A great number of services are being provided to patients by various hospitals, doctors, and other health care facilities. Receiving different types of treatment and care as part of such services, patients owe certain amount of money to these physicians and practices. Practices and physicians, on their part, are paid by patients and insurance companies for the services provided. It is the responsibility of the AR follow-ups department to manage payment-related issues such as denials from insurance providers.
The Accounts Receivable Process
If left without proper follow-up, physicians and hospitals may have to face the challenge of longer receivable cycles caused by the tedious processes that are involved with payment collection from insurance providers. Claims denial and disputes may aggravate the collection process. Efficient management of accounts receivable necessitates a few crucial steps as given below:
- Access and analyze receivables
- Data on accounts receivable needs to be first gathered and reviewed
- Generating Aging Report
- Accounts receivable have to be properly sorted into age-wise buckets
- AR Calling
- Payers such as Medicare, Medicaid, or insurance companies need to be called
- Analysis and Reporting
- Call outcomes must be documented and studied to understand receivables trends
Importance of AR Follow-up in Medical Billing
Account receivable management which was once considered an internal
process of low significance has of late been marked as a specialized skill that
requires professionals. In recent times, it has become vital in billing services
provided by medical billing companies.
Prior to starting the AR follow-up, the process of charge entry, payment
posting, and verification are done. Charge entry is the procedure in which
charge codes are entered in medical claim forms. There is a voluminous
work involved before physicians and practices may claim payment for
services provided. This makes Accounts Receivable follow-up critical in
the medical billing process.
What Does the AR Team Do?
Analyzing denied claims, non-payments, and partial payments have to be
performed by the AR team. Claims that have been submitted incorrectly
have to be corrected and re-submitted by the team. The team communicates
regularly with the patient, medical office, and the insurance company. The
financial well-being of physicians, practices, and medical billing companies
depends on the effectiveness of the accounts receivable team.
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