November 17, 2021

Importance of cleaning up old uncollectible A/R

The billing cycle in a medical practice can vary between a few weeks and several years. Standard commercial claims without deductible can settle in weeks whereas Workers Compensation (WC) and Personal Injury (PI) claims sometimes can drag for years.

Also in the mix are claims denied due to lack of pre-authorization, network participation, credentialing, and inclusive/non-covered codes. Glenwood works these claims expeditiously to resolve them using the appeals process. Claims that do not have supporting information for the appeals are presented to the practice for decision - bill patients or write-off.

The practice must decide on time for uncollectible claims. If a decision is delayed, these claims cloud the Accounts Receivable picture and can affect the follow-up process of genuinely collectible claims. The uncollectible claims, accumulated over the years, can be disproportionately large compared to collectible A/R. It makes the biller's task to separate and track the collectible A/R extremely difficult.

Paying attention to old uncollectible with a periodic review is a good practice that everyone should follow for effective revenue cycle management.

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