Tips To Improve Account Receivable In Your Medical Practice
Are you thinking that high accounts receivable are affecting the cash flow of your practice? If so, then you are not the only one- many practices go through revenue postponement for the same reason. What is A/R in Medical Billing? When your practice bills an insurance company or patient for services, the cash they are indebted is known as accounts receivable (A/R). Normally, practices calculate A/R like “days in A/R”, which is considered by dividing the overall A/R amount by the average daily charges of hospital revenue cycle management . If your practice in A/R is 30 days, then you won’t get paid for 30 days of work. A/R in healthcare accounts receivable management is categorised by age, i.e. time period from the insurance company or patient was billed. Good practice ensures an increase in cash flow, which includes the highest ratio of A/R in the main bucket and a lessening amount in every following bucket. Top Tips To Improve Cash Flow And A/R A high A/R prevents ca