The Process of Accounts Receivable Management

Accounts receivable management is the art of keeping track of how much credit the business 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. Medical professionals provide patients with the very best care possible and anticipate to be paid for their services from the insurance provider and clients. The health care insurance system works in a curious way where the company provides service and is re-imbursed at a much later stage.

Whether we like it or not, the insurance coverage model is here to stay and it is vital for both little suppliers like doctors offices and physician groups and large suppliers like big health centers to diligently follow up on payments that are due. The accounts receivable management has actually established into the most significant department in these organizations as they assist in recovering the money from patients and insurance provider and help to keep the business running.

There are specific rules specified by the insurance coverage companies on what makes up a legitimate claim and there are hundreds of rules some simple and others complex to determine the credibility of a claim. The insurance coverage company processes the claim and sends a payment remittance to the billing business however the response time is unpredictable and for this reason the requirement of a special accounts receivable team. The AR team takes over the claim and follows up with the insurance coverage company for payments.

The AR group analyzes the https://www.linkedin.com/company/zenith-financial-network-inc claim for rejections, partial payments and non-payments and if the claim has been submitted improperly, the claim is corrected and re-submitted. The AR group develops a consistent communication mechanism with the insurance coverage company, client and the medical office and diligently follows up to guarantee complete and fast payment.

The aging report is the most common tool to determine the efficiency of the accounts receivable group. This shows the quantity that is due to the supplier and is broken down into different durations - 0 to One 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 30 days is thought about very effective.

In conclusion, the accounts receivable management is THE most important service provided by medical billing companies and the effectiveness of this group will determine the monetary health of the billing business as well as the medical practice. If you have any concerns regarding 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 guidelines defined by the insurance coverage companies on exactly what makes up a valid claim and there are hundreds of guidelines some simple and others complex to identify the credibility of a claim. The claims are then submitted to the insurance coverage 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 exclusive accounts receivable team. The AR group takes over the claim and follows up with the insurance company for payments.

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