The Importance of Running an Insurance Accounts Receivables Report for Healthcare Professionals

One of the single most important things that a healthcare professional can do to keep on top of their insurance billing (and make sure things don’t slip through the cracks), also happens to be one of the things most offices steadfastly refuse to do.

That would be (drumroll please) – REGULARLY running Insurance Accounts Receivables (A/R) reports

So, naturally, we thought this would make for a perfect topic of discussion. Assuming the idea of increasing cash flow for your office is appealing to you, keep reading as we dive a bit deeper into A/R reports and why it’s so important that they aren’t ignored.

Accounts receivable (AR) is the money that is owed to a business by its customers / patients. For providers, a significant portion of their AR is likely to be owed by insurance companies.

An insurance accounts receivables report (IAR) is a detailed report that shows all of the outstanding AR that is owed to a provider by insurance companies. The report typically includes information such as the patient's name, insurance company, date of service, claim amount, and payment status.

There are several important reasons why healthcare professionals should run IARs on a regular basis.

1. To track outstanding AR

The IAR can help providers to track all of their outstanding AR, which can be helpful in identifying any potential problems. For example, if there are a large number of claims that have not been paid, the provider may need to take steps to follow up with the insurance companies.

2. To identify slow-paying insurance companies

The IAR can also help providers to identify insurance companies that are slow to pay their claims or simply just refuse to for whatever reason. This information can be helpful in deciding which insurance companies to accept in the future.

3. To estimate future cash flow

The IAR can be used to estimate future cash flow by projecting when insurance payments are likely to be received. This information can be helpful in budgeting and planning for future expenses.

4. To catch claims that “fell through the cracks”

It DOES frequently happen where a claim is submitted and the insurance company just “doesn’t get it”. It’s important for you and your staff to be knowledgeable and aware of that so you can properly resubmit claims within timely filing periods.

5. To improve cash flow

By tracking outstanding AR, healthcare professionals can take steps to improve their cash flow. This can be done by following up with insurance companies, resubmitting claims, or following up on appeal statuses.

If you’ve read this far, and still have questions relating to Accounts Receivable Reports (or you just want someone with expertise to help you work through yours) do not hesitate to reach out! We are a team of billing experts that love to help others improve their business and increase cash flow. Check us out and schedule a free discovery call at www.bushidobilling.com to see if we might be the right fit for you!