Fast Billing Solutions

The AR (accounts receivable) process in medical billing holds critical importance. If the AR process in medical billing doesn’t go smoothly, it will impact the revenue cycle of the healthcare provider. Delay in payment collection may result in payments that they might not receive at all. In this blog post, you will learn the process of accounts receivable in medical billing.

AR Process in Medical Billing

There are a few healthcare accounts receivable aspects that are different from accounts receivable in many other industries. However, the process of accounts receivable remains quite the same.

Institute Credit Terms

The organization needs to decide if it will extend the credit line to new clients according to the credit history. After the approval, a credit officer defines the client’s credit limit. He will form payment terms that include interest rates, deadlines, etc.

Collect Invoice Information

Next, the organization will gather the invoicing information. This include purchased service or product descriptions, services or products cost, and the payment deadline. After that, they generate the client invoice.

Sharing Invoices with Customers

In this step, they send invoices to customers. The invoices are sent via email (digital forms), by post (paper invoices), etc.

Track Payments and Invoices

Every subsequent payment and invoice must be appropriately confirmed and tracked with customers. This is the most crucial phase in the AR process in medical billing. Generally, it is the ARO’s responsibility. It is done either manually (through mailed or printed spreadsheets or QuickBooks) or automatically (using automated, robust systems that monitor and track payments and invoices).

So, this is how the process of accounts receivable in medical billing goes. It is a bit different from the AR process in other industries, but not much. The process must go flawlessly if the organization wants to ensure a smooth and hassle-free revenue cycle.

You May Also Read: Best Practices to Manage AR in Medical Billing

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