Generally, AR refers to the amount of money that the customers owe to the company. Accounts receivable in the healthcare industry refer to patients’ account balances due for payment, either from a third-party (i.e., insurance company) or patient.
The process of AR analysis includes the management of reports concerning insurance, collection and ratio analyses, and bad debt reviews. Also, it involves the study of insurance contracts. Examining the arrangements ensures that the healthcare providers collect full reimbursement.
Analyzing accounts receivable in healthcare is often overlooked. The national average of bad debt in healthcare is 3.7 percent.
Efficient account receivables management determines the financial security of your organization. AR analysis is the process of reviewing financial records and accounts to provide clients, customers, and patients with accurate billing information.
The AR summary plays a vital role in AR analysis. This summary will help determine the patients who still have an outstanding balance and are past due.
With the AR summary, healthcare providers can now assess their receivables in a variety of ways. It can be evaluated by every individual patient, by insurance plans, and by the payers’ class.