Accounts receivable (AR) in medical billing is the money you’re owed by patients, insurance companies, or other payers. With all the regulations out there, managing your AR can feel overwhelming, but it’s key to keeping your finances stable. You’ve probably dealt with delayed, underpaid, or denied claims before. The good news? A medical billing company can help take that stress off your plate. Experts work with you to take action, collect what’s owed, and keep your AR in great shape.

If you want to streamline the perfect hospital accounts receivable solutions, you must know what AR is, how to count days in hospital accounts receivable and how to improve your overall hospital AR management services.   

Ideally, you should submit a medical claim within 72 hours after providing the service. Clean claims sent electronically could get paid within two weeks. But many things can cause delays. A report shared by American Hospital Association said that almost half of the hospital in the nation had accounts receivable amount of $100 million on claims more than six months old, so you must look forward to improving your AR so that you can get reimbursed on time.

If your collections are delayed and overdue payments keep piling up, your days in AR (the average time it takes for a claim to be paid) will increase. To understand your practice’s financial health and find ways to improve, you need to track your days in AR.

You can calculate days in AR by dividing your total accounts receivable by your practice’s average daily charges. You should always aim for keeping your AR days below 50, while, keeping 30-40 days is the ideal for your hospital. You must keep track of your AR so that you can decide where you should make improvement to amplify your overall revenue.  

Unfortunately, you can face increased days in hospital AR management services because of the reasons mentioned below-

• Claim filing delays
• Not conducting insurance eligibility verification
• Coding mistakes
• Errors in data entry
• More number of claim rejections  
• Poor process of claim appeals  
• Delayed credentialing  
• Mistakes in clam posting process

Efficiently managing your accounts receivable is key to billing success. AR management means tracking unpaid accounts, reviewing payment actions, and taking steps to secure payments. Doing this helps you reduce your days in AR and improve cash flow.

Rewrite, make it simple and use more “you”: Understanding the patient’s current insurance information helps identify the patient’s coverage as well as their financial responsibility. Insurance verification specialists obtain and verify details such as insurance, demographic and contact information, providing a clear idea about:

You should update patient records before their appointment so the insurance verification specialist can confirm their coverage. Verifying insurance at every visit helps you catch any unpaid balances from past visits that the patient may need to settle.

You must educate your patients about their insurance benefits and set a clear policy that you should tell about your patient expectations. Your payment policy should include:

• The exact date of due payment
• Who is responsible for the payment- the patient or their insurance company
• How will they handle co-pay or deductible?
• Types of payment modes that you offer

To improve your days in AR, make sure you collect all copayments, prepayments, and any outstanding balances at the time of service. After the appointment, follow up by sending statements that clearly show the payment due dates, available payment options, and contact details for billing questions. Offer multiple payment methods. Regularly check patient aging reports and reach out to patients with unpaid balances. Have a plan for those who pay on time and for patients with larger amounts due.

Keeping an eye on payments from carriers is key to maintaining your practice’s financial health. To make sure you're getting paid on time, spot any issues or trends that slow down reimbursements. MGMA suggests reviewing collections by payer to see which insurance companies take longer to pay or have more denials. A medical billing company can help by creating monthly reports that track AR cycles over different time frames. This shows you how much each payer owes, how much hasn't been collected, and if that amount is growing. They'll also track every claim, so any denials or rejections can be fixed and resubmitted.

The truth is that managing your hospital accounts receivable effectively is crucial for financial stability. By understanding what AR is, tracking your days in AR, and implementing best practices like timely insurance verification, patient education, and regular communication with payers, you can improve your overall AR management services. Working with a hospital accounts receivable company can provide the expertise you need to streamline these processes, ensuring you receive timely reimbursements and maintain healthy cash flow. Taking these steps will not only enhance your billing success but also support the long-term financial health of your practice.