Maximize Profits by Ensuring the Accuracy of your Aged Receivable Reports

Aged receivables are a measure of your practice’s financial health. However, many aged receivable reports tell only part of the story. A thorough analysis ensures you do not leave money on the table, and here are a few things you should look for.

What is the Actual Age of your Receivables?

A typical aged receivables report will list accounts that are 30, 60, 90, and 120 days delinquent. While this information is important, the truth is that it only tells part of the story. Many programs only begin calculating time whenever an initial claim is filed. As such, your report may not reflect whether or not there are gaps between when a patient receives services and the time that a claim is submitted to an insurance company.

Your receivables may also be older if your software program automatically “resets” the clock whenever an appeal is filed or an insurance company is rebilled. This can give you a false sense of security because your reports may actually reflect fresh claims when in fact they are actually several weeks or even months old. If your medical billing and coding specialist routinely performs mass rebillings, the number of aged receivables you actually have versus what is reflected could be staggering.

Compare your Specialty to Others

It’s not enough to know how many of your claims are 30, 60, 90, or 120 days past due; you should also find out how your practice stacks up to others in the same specialty. One way to do this is by comparing reports from the Medical Group Management Association (MGMA), which calculates the average percentage of past-due accounts in a variety of specialties.

Your actual percentages may vary somewhat; however, figures that are significantly higher or lower than the national average should warrant a further investigation. A medical billing and coding audit could be in order to identify areas that need improvement.

Ensuring Accurate Reports

Whenever possible, you should run your aged receivable reports based on the patient’s date of service rather than a billing date. Only then should you compare your results to the ones provided by the MGMA. You should also make it a point to run reports at least monthly, and to spot check accounts for accuracy to ensure that none are overlooked. Aged receivable reports should also be ran just before mass rebilling takes place and again immediately afterward so the two versions can be compared with one another.

Keeping up with aged receivables is hard enough without having to analyze reports and check for discrepancies, but taking the time to perform it correctly can make the difference between success and failure. Why leave anything to chance when you can partner with Leeward Medical? We specialize in error-free claims, and guarantee that at least 85% of your charges will be resolved within the first 60 days of filing. If you are struggling to keep up with your aged receivables, or are not quite sure how accurate your reporting is, please feel free to contact us.