Medical Billing Blogs

After a patient or the patient’s insurance provider has been billed for DME services, accounts receivable (A/R) refers to the money owed to the practice. The practice can calculate A/R in a variety of ways. Firstly, a practice often keeps track of “Days in A/R” by dividing A/R totals by average daily charges. Secondly, accounts are typically classified according to their age, such as: 1 to 30 days after billing 31 to 60 days after billing 61-90 days since billing 91-120 days since billing The longer an account stays unpaid for services performed, the more likely it will never be paid. As a result, even when money is definitely owed, ARs do not always record as revenue. According to research, a provider may expect to receive around 10 cents on the dollar for each account over 120 days old. Unfortunately, failing to manage ARs on time overburdens financial departments, increases workload, and often results in excessive costs and revenue leakage for the DME practice. ...