What Do Your A/R Reports Reveal?
We have reached the time of year when the fiscal year is coming to a close for many of our practices, whether that is this quarter or next. If you haven’t been closely tracking your accounts receivable throughout the year, this is a good time of year to take stock of where the outstanding monies lie for your practice.
The following provides guidance for examining your practice’s A/R. We’ve included an explanation of what a healthy A/R report looks like within a healthy revenue cycle, and also indicate some areas where a good looking A/R report may not give you the full picture. We tell you where you need to dig deeper to confidently grasp your practice’s A/R.
Why do you have high volumes in your A/R Reports?
High A/R could indicate a number of issues with your billing processes. A healthy A/R aging report is often identified with a high volume of charges aged 30 days or less, with the volume dwindling dramatically across the more aged categories. However, even an A/R report that looks like this is not automatically indicative of good revenue cycle processes. Learn these possible pitfalls and you will learn to love your A/R reports as one of the better tools available for assessing your revenue cycle:
You have a high volume of patient due balances
With the increase in high deductible plans, a greater portion of your overall A/R is coming directly from patients. If you are not diligent about collecting balances due from your patients, you will see an increase in your A/R.
Billers are not working denied claims as routinely as possible
It’s important to keep up with any denied claims received – the quicker you resolve, the quicker you close that open A/R.
Billers are not following up timely with insurance companies on unpaid claims
As above, it is critical to followup timely with insurance companies on unpaid claims to resolve any open issues causing the insurer not to pay, obtain payment, and close open A/R.
Billers are not following up at all with insurance companies on unpaid and denied claims!
To appropriately close open A/R, you have to work unresolved claims. In a busy office, this can be difficult (we understand!), but the key is to devote a little time each day to follow-up to keep up on this important revenue cycle piece.
One or more physicians are not properly credentialed with one or more insurance companies
Keep a schedule for yourself of when physicians are due for re-credentialing, and be sure to remember to credential and add to your insurance contracts any new physicians who join your practice.
You do not have certified coders working your charge review allowing for a greater volume of errors and fewer clean claims submitted to insurance companies
Thorough review of charges by certified coders is an excellent way of ensuring full charge capture and sending a higher percentage of clean claim, leading to quicker payment, less work on the back-end, and lower A/R.
Your registrars are making mistakes during the registration process
Weak front-end processes lead to information errors submitted on claims. If you strengthen your front-end processes, you will reduce errors and reduce denials associated with registration errors.
Some insurance companies are simply relatively slow at paying claims
You have one in mind now, don’t you?! Sometimes this is avoidable if you speak with the insurance company. Often it is unavoidable. In this case, isolate the affected A/R so that you do not miss another problem, and so that you can look at your A/R but for this one unavoidable problem.
*Note: In addition to these problems related to high A/R, reports that look too good could be indicative of too many write-offs. A/R reports – specifically A/R aging reports – are one of the best tools for assessing your billing health and isolating the problem areas in your revenue cycle where you should focus your resources.
Are your A/R reports telling you that there’s room for improvement? We’re here for you. Contact us to get your revenue back on track today!