What are aged receivables services, and why do healthcare providers need them? Any healthcare provider will know that submitting a claim for medical services rendered is not always an efficient way to get sufficient reimbursement at a reasonable time. Whether it’s due to mistakes made by medical billing staff or problems experienced by the insurance company, payments may be denied or rejected, even on legitimate claims.
Problems often happen when it comes to medical claims and reimbursements. Claims may get lost in the abyss of bureaucracy and forgotten. No one wants to deal with claims that have a pending status for an indefinite amount of time. This is the point when aged receivables come into play for healthcare providers. If you’re looking for professional help dealing with aged receivables services, reach out to CodeMax Medical Billing today. Our team of friendly professionals can be contacted by calling 866.471.3267 or completing our convenient online form.
What Are Aged Receivables?
So, what are aged receivables? Aged receivables are also accounts receivable. The difference is just in the age of the medical accounts that are being referred to in the usage of the term being used.
A medical account receivable involves the outstanding reimbursement owed to healthcare providers for issued treatments and services. It doesn’t matter whether the financial responsibility falls to the patient or their insurer. Healthcare providers must stay on top of efforts to collect reimbursement for all their medical accounts receivable.
The longer a medical account receivable goes unpaid, the less likely healthcare providers will receive the payment at all. After about four months, healthcare providers can only expect to get 10 cents per dollar owed.
What Counts As Aged Receivables?
As mentioned earlier, healthcare providers typically classify accounts receivable in terms of their age. Thus, aged receivables can be split into four stages, which are:
- 1-30 days
- 31-60 days
- 61-90 days
- 91-120 days
Failure to collect reimbursement quickly can lengthen the medical account receivable cycle. Due to this, healthcare providers risk revenue leakage. These are situations when the treatments and services they provide to patients are not fully reimbursed, and healthcare providers suffer a financial loss.
Aged receivables are the subject of accounts receivable aging reports. Keeping a close watch on aged receivables is essential for healthcare providers. They can indicate that certain patients are becoming credit risks. They may also reveal whether healthcare providers should keep doing business with patients that are chronically late payers.
What Is an Accounts Receivable Aging Report?
This management tool is a periodic report that categorizes a healthcare provider’s accounts receivable according to the length of time receivables have been outstanding. These periodic reports are used to determine the financial health of a healthcare provider’s patients and their insurers.
Suppose the accounts receivable aging shows that a healthcare provider’s receivables are being collected much slower than normal. In that case, this is a warning sign that business may be slowing down or that the healthcare provider is taking greater credit risk in its practices.
The aged receivables report provides details of specific receivables based on age because it’s an easy way to show which receivables have been neglected for the longest time. The specific receivables are aggregated to display the total receivables, based on the number of days the receivables are past due. Healthcare providers may use the information on accounts receivable aging reports to create solutions that will improve their revenue collection. For example, they can send collection letters to patients with overdue balances.
Explore More About CodeMax Medical Billing’s Aged Receivable Services
If your practice is looking for professional help with it comes to dealing with aged receivables services, contact CodeMax Medical Billing today. Reach out to our team by filling out our online form or calling 866.471.3267.