Account Receivable Services
There are many moving parts in your practice’s revenue cycle management (RCM). But one of the most critical components is your accounts receivable, or A/R. Tracking and improving accounts receivable in healthcare is crucial for building a thriving, financially strong practice.
Accounts receivable in healthcare (A/R) are the invoices or reimbursements owed to a medical practice, hospital or other healthcare company. These unpaid accounts may include outstanding patient invoices or insurance company reimbursements.
Your practice bills a patient or submits a claim to a health insurance company, the A/R process begins. After the patient pays the invoice or the insurance company reimburses your practice, the account is no longer in A/R.
In healthcare RCM, usually categorize A/R based on age, usually in 30-day buckets:
• 1-30 days
• 31-60 days
• 61-90 days
• 91-120 days
• 120+ days
Maintaining healthy accounts receivable in healthcare means tracking a few critical RCM key performance indicators (KPIs). These include:
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Average days in A/R – This is the average amount of time it takes for patients or insurance companies to reimburse your practice after the appointment date. Our RCM industry experts recommend keeping your average days in A/R to 35 days or less.
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A/R > 90 – This is the percentage of A/R that’s older than 90 days or the percentage of invoices or claims that have gone unpaid for 90 days or more. Our RCM experts recommend keeping this to 10% or less.
