Issues like denials, unpaid claims, and rejections significantly hamper a medical billing’s company performance, but a successful AR recovery strategy will tilt the odds back in your favor.
In addition, when implemented correctly, an AR recovery strategy leads to faster payments and a better-performing revenue cycle.
Unfortunately, many practices lose vast amounts of money because of rejections, unpaid claims, and denials. This lost revenue gets restored through AR recovery when your team resolves denied or unpaid claims.
With the healthcare industry constantly changing, seeking reimbursement from denied claims is challenging. Higher deductibles, different insurance companies at play, and stricter payer-allotted funds, caring for patients while also tackling collections requires a sound AR recovery strategy.
We’ll explore everything you need to know about AR recovery by explaining five key components and how our medical billing company in Florida can help.
Your Accounts Receivable Aging Report
An accounts receivable aging report helps your denial management and AR team rectify any denied claims or appeal claims for reimbursement.
The aging report categorizes denied claims by the length of time they remain outstanding, measured in days. The older the claim, the less likelihood there is for reimbursement. This report gives your team a clear timeline.
Tracking and Understanding Your Medical Billing Reports
A successful AR recovery strategy includes tracking and understanding every medical billing report. Typically, these reports fall into one of four categories:
- Unpaid or lowly paid
Analyzing your medical billing reports helps determine overall percentages subscribed to each category.
Having Metric-Drive Timelines to Improve Your Bottom Line
Having delineated timeframes and goals driven by metrics will improve your practice’s bottom line. For example, you want your practice to optimize total revenue by increasing its collections.
Sometimes healthcare organizations make the mistake of only focusing on factors like increasing the number of patients. Along with your everyday business practices, you also want to ensure you receive every dollar owed to you from the insurance companies.
Having a Qualified AR Recovery Follow-Up Team
Given the importance of rectifying denied claims, an AR recovery team is crucial. Your AR recovery follow-up team will track any low-paid, delayed, or denied claim. They will then determine next steps based on two significant factors:
- The provider’s adjustment and write-off policy
- Each insurance company’s appeal and filing limits
A qualified AR recovery team can also help your practice discover root causes that exist for your denials. Although each case is different, many healthcare practices notice a trend across their denied claims. For example, CAS Codes vary across insurance companies.
Outsourcing Your AR Recovery Process
Lastly, outsourcing your AR recovery process to a specialized team will significantly improve your practice’s operations. Since 2003, PracticeForces has provided medical billing management services to healthcare organizations. Our many services include AR recovery.
Call PracticeForces Today
Even the most diligent healthcare practice receives denied, underpaid, or delayed claims. AR recovery resolves many of these issues, but having a sound AR recovery requires time, patience, and expertise. Our PracticeForces team handles many medical billing functions, including AR recovery.