How to Get the Most From Your A/R Reports
Published on Mon Jul 01, 2002
A/R reports can be a pain in the neck, but with careful planning they can help you maximize collections and position your practice to prosper in the future. For example, you can generate reports that "allow you to see and track specific details regarding your payer mix," says Stephanie Jones, NR-CMA, NR-CAHA, CPC, vice president of operations at Aztec Medical Systems, Miami. "This information where your revenue is coming from (or not coming from) allows you to plan quickly for other business activities such as targeted marketing and proactive collections." Choose the Best Reporting System for You There are several ways your practice can prioritize how you enter information into your system and how you run your A/R reports. No matter which system you choose, print reports based on a combination of the following: 1. Aging of Account. The older the receivable, the less valuable it is, according to "Mastering the Reimbursement Process," published by the AMA. To determine the value of your receivables, sort the accounts into age groups (30, 60, 90 or 120, etc.) so you can focus on the account with the greatest number of days elapsed since payment was due. Sorting by age is helpful because the older an account, the more difficult collection becomes. For example, an account that is 60 days overdue has a 90 percent chance of being recovered, while an account that is 180 days overdue has a 30 percent chance of collection.
"Make it a goal for your office not to let any account age past 60 or 90 days without someone checking on it," says Sarah F. Mountford, BA, CPC, A/R manager for Physicians Business Network, a multispecialty practice group with more than 36 physicians in Overland Park, Kan. She recommends that you run a list of your 90-day-old balances and call the insurance companies that owe your practice money. "It's much easier to collect at 90 days than it is a year later," Mountford adds. "Many insurance companies now have online access, making it much easier to follow up on your 'no response' claims." 2. Balance Due. If you quickly focus on the claims that have the highest overdue balances, you will increase your opportunity to recover the money through rebilling and finding out what the problem is before it is too late.
"In most practices, balances under $10 wind up being less than 1 percent of the total A/R, so concentrating on the larger balances is key," Mountford says. A good model to follow when prioritizing outstanding balances is:
1. Greater than $3,000
2. $2,000 to $2,999
3. $1,000 to $1,999
4. $500 to $999
5. $100 to $499
6. $50 to $99
7. $10 to $49. Remember that [...]
