Best Practices For Addressing Legacy AR In Healthcare Billing
Imagine a towering stack of unpaid bills from patients and insurance companies, steadily growing taller with each passing day. This pile-up of legacy AR isn’t just a matter of inconvenience; it’s a pressing concern that impacts the financial health and operational efficiency of hospitals across the country. As of 2021, hospitals in the United States were grappling with over $40 billion in unpaid patient bills, according to Healthcare Financial Management Association (HFMA) data. This staggering figure significantly burdens hospital resources, affecting everything from cash flow management to patient care delivery. But the problem doesn’t stop there. The American Hospital Association (AHA) reports that the average hospital spends approximately $1.2 million annually on uncompensated care, further exacerbating the strain caused by legacy AR. Did you know? Legacy AR, or Accounts Receivable , refers to outstanding balances owed to a healthcare provider by patients or insurance c...