Hospitals and physicians these days are offering many more new services than before. With additional services, recovering overdue payments on time have become a little more difficult for insurance companies. This is why AR follow up in medical billing has become so crucial for healthcare providers. In this blog post, we will tell you why accounts receivable follow-up is so important in medical billing.
Importance of AR Follow Up In Medical Billing
When we talk about the healthcare or medical industry, the AR follow-up team handles denied claims. They are responsible for renewing these claims to ensure that the practice gets maximum repayment from insurance companies.
Having a proper follow-up on claims after you submit them is very important to minimize submission-payment days. You should know that you don’t stretch claim submission time over 72 hours after providing services.
Moreover, managing AR in medical billing is a hassle for healthcare providers. Providers need to track unpaid accounts, evaluate payment plans, and use required procedures for ensuring the total payment.
Ensuring successful claim payment and making sure that the patient pay all his pending balances are critical part when it comes to managing AR. According to a recent study, around 25% of rendered patient services are unpaid. Another study revealed that just 70% of claims are repaid right after their submission.
Here are more reasons why AR follow-up is critical in medical billing:
- Makes sure that hospitals remain financially stable
- It is helpful in pending payments collection
- AR follow-up minimizes outstanding payments time
- It ensures that claims reach payers on time
- Helps keep an eye on denied claims
- Helps track the situation of the member and find missing information
AR follow up in medical billing holds great importance if practices want to ensure timely reimbursement of services they render.
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