Accounts Receivable (AR) follow-up in medical billing is a crucial process that ensures healthcare providers are compensated for their services. At Soho Tech Services, we understand the importance of efficient AR follow up in maximizing revenue, minimizing claim denials, and ensuring your practice maintains a healthy cash flow. In this blog post, we’ll explore the significance of AR follow up in medical billing, the steps involved, and how outsourcing this task to professionals can benefit your practice.

What is AR follow up in Medical Billing?

AR follow up in medical billing refers to the process of tracking and managing unpaid medical claims. It involves monitoring claims submitted to insurance providers, identifying any that have not been paid or have been denied, and following up with the payer to ensure reimbursement is received. This process is essential for ensuring that healthcare providers are paid for their services in a timely manner.

Why is AR follow up Important in Medical Billing?

AR follow up plays a vital role in the financial health of medical practices. Here are several key reasons why it is so important:

  1. Faster Payment Collection: Timely follow-up on unpaid claims ensures that payments are processed quickly, reducing the time it takes for healthcare providers to receive compensation for services rendered.
  2. Prevents Revenue Loss: Uncollected claims can result in significant financial loss for medical practices. Proper AR follow up helps prevent claims from becoming write-offs by ensuring they are processed and paid.
  3. Minimizes Denials and Delays: Many claims are denied due to errors or missing information. AR follow up involves identifying these issues, correcting them, and resubmitting claims, which reduces the chance of denials and ensures timely payment.
  4. Improves Cash Flow: A well-managed AR follow up process ensures that your practice consistently receives payments for services rendered, thus maintaining a steady cash flow.
  5. Maximizes Revenue Recovery: By following up on unpaid claims, your practice can recover more revenue, ensuring that services are reimbursed in full and avoiding write-offs.

Steps Involved in AR follow up in Medical Billing

The AR follow up process typically involves several key steps:

  1. Claim Review: Initially, all unpaid or outstanding claims are reviewed. This step ensures that the claims are legitimate and that there are no errors in the billing codes or patient information.
  2. Identifying Denied Claims: Once claims are reviewed, denied claims are identified. Insurance companies typically provide denial codes that explain why a claim was rejected. This step involves thoroughly analyzing these codes to determine whether the denial is due to an error, lack of documentation, or another issue.
  3. Resubmission and Corrections: After analyzing denied claims, the next step is to make necessary corrections, such as fixing coding errors or providing additional documentation, and resubmitting the claims for payment.
  4. Appeals Process: If claims are still denied after resubmission, the appeals process begins. This involves filing a formal appeal with the insurance company, often requiring additional documentation to support the claim and explain why the denial was unwarranted.
  5. Communication with Payers: Ongoing communication with insurance payers is crucial to ensure timely processing and payment. RegulAR follow ups via phone or email help resolve issues and expedite payment.

How Soho Tech Services Can Help with AR follow up

Outsourcing AR follow up to Soho Tech Services allows your practice to focus on patient care while we handle the complexities of billing and claims management. Our experienced team will: