The Process of Accounts Receivable Management

Accounts receivable management is the art of tracking how much credit the company has actually given its clients, when the company can expect it back. Generally these involve an amount that a client owes to the business regarding the sale of any service or product. Doctors offer clients with the very best care possible and expect to be paid for their services from the insurance provider and clients. The healthcare insurance system operates in a curious method where the service provider delivers service and is re-imbursed at a much later phase.

Whether we like it or not, the insurance model is here to stay and it is crucial for both little providers like physicians workplaces and doctor groups and big providers like big healthcare facilities to vigilantly follow up on payments that are due. The accounts receivable management has developed in to the most considerable department in these companies as they assist in recuperating the cash from patients and insurance companies and help to keep the business running.

The task of accounts receivable management has developed from a simple department activity to a specialized ability center by itself and needs specialists so that medical professionals can concentrate on providing the very best care to their clients. This activity has actually ended up being a crucial and important part of the overall billing services that are offered by medical billing business. The process of accounts receivable follow up is preceded by charge claim, verification, and entry posting. The process of going into the charge codes into the healthcare claim sheet is called charge entry. This involves determining the procedure codes and diagnosis codes based upon the treatment carried out by the medical professional. There are specific guidelines specified by the insurer on what makes up a legitimate claim and there are numerous rules some simple and others complex to determine the validity of a claim. The audit group normally examines the claim based upon the guidelines and approves the claim for submission. This is an essential action as this considerably decreases the threat of claim rejections. The claims are then submitted to the insurance provider for processing. The insurance provider processes the claim and sends a payment remittance to the billing company however the action time is unforeseeable and thus the requirement of an exclusive accounts receivable team. The AR group takes control of the claim and follows up with the insurance company for payments.

The AR group evaluates the claim for denials, partial payments and non-payments and if the claim has actually been filed improperly, the claim is fixed and re-submitted. The AR team establishes a constant interaction mechanism with the insurance coverage business, patient and the medical workplace and carefully follows up to make sure complete and fast payment.

The aging report is the most typical tool to measure the effectiveness of the accounts receivable team. This reveals the amount that is because of the service provider and is broken down into various periods - 0 to 1 Month, 31 to 60 days, 61 to 90 days and more than 90 days. An aging report that has less than 5% of total quantity pending for more than One Month is considered extremely effective.

In conclusion, the accounts receivable management is THE most essential service offered by medical billing business and the efficiency of this team will figure out the financial health of the billing business in addition to the medical practice. If you have any concerns concerning accounts receivable and the best ways to receive timely payments from insurance companies.


Accounts receivable management is the art of keeping track of how much credit the company has actually given its clients, and when the business can expect it back. There are particular rules specified by the insurance coverage companies on exactly what makes up a valid claim and there are hundreds of guidelines some basic and others complex to identify the credibility of a claim. The claims are then submitted to http://www.buzzfile.com/business/Zenith-Financial-Network-Inc-561-807-8599 the insurance business for processing. The insurance business processes the claim and sends out a payment remittance to the billing company however the action time is unpredictable and thus the requirement of an unique accounts receivable team. The AR group takes over the claim and follows up with the insurance coverage company for payments.

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