Accounts receivable, or AR, is an important factor in medical billing. All the relevant people must know that different parts come together in medical billing to make sure healthcare providers get paid for the time and care they deliver. And among all the billing terms and processes, one part is accounts receivable, which is very critical but overlooked most of the time. That’s why the denial rate is increasing day by day. Healthcare providers lose millions of dollars annually, and most of the denials can’t be reworked due to follow-up differences.
But if you do not know about Accounts Receivable (AR), then how can you work to improve your revenue cycle? So first, let’s discuss what AR means. And why does AR follow-up play such a huge role in keeping your revenue cycle healthy?
Understanding Accounts Receivable (AR) in Medical Billing
Accounts Receivable represents the money owed to your medical practice by patients or insurance companies after services have been provided.
Every time your clinic treats a patient, a charge goes out, and until that charge gets paid, it gets in your AR. So basically, AR is the money that’s promised to your practice but hasn’t hit your bank account yet. For example, you provide a treatment worth $500. You send the claim to the insurance company and expect reimbursement. Until that payment comes through, that $500 stays in your AR.
If payments are delayed or denied, that money continues sitting there, often getting older by the day. And the longer it sits, the harder it becomes to collect. That’s where AR follow-ups are useful.
Why AR Follow-Up Is the Backbone of Healthy Revenue Cycle Management
There are a few claims that go through smoothly. Most of them get denied due to missing codes, are delayed for additional documentation, or sometimes just get lost in the payer’s system.
Without a proper AR follow-up process, these claims can quietly age out, meaning you never receive payment, even for legitimate services.
But when you’ve a dedicated AR team or a billing partner like M&M Claims Care, things change. Our specialists keep a close eye on every outstanding claim, identify what’s holding up payments, and work directly with insurance companies and patients to make sure your money gets to you faster. Let’s show you the importance of AR follow-ups for smooth revenue cycle management.
Unpaid Claims Don’t Just Sit — They Age, and That’s a Problem
Every day that passes without payment affects your revenue. Insurance payers often have strict deadlines, and if a claim isn’t followed up on or appealed within a certain window, like 90 or 120 days, you might lose your chance to collect.
That’s why timely AR follow-up is important. The sooner you identify why a claim hasn’t been paid, the faster you can fix it — whether it’s correcting a coding issue, resubmitting documentation, or appealing a denial. Your main goal in AR follow-ups is not just to get paid but to get paid before time runs out.
Denials and Delays Don’t Have to Mean Lost Revenue
As an experienced medical billing company, we understand that denials are a part of medical billing but they do not have to mean loss. With consistent AR follow-ups, denied or delayed claims can be recovered, sometimes entirely. A best AR-follow-up team must:
- Review every denied claim to understand why it was denied.
- Fixes the issue (whether it’s a missing modifier, outdated CPT code, or lack of documentation).
- Resubmits or appeals the claim within the payer’s time limits.
At M&M Claims Care, our AR specialists track patterns and make corrections. If we see frequent denials from a certain payer for a certain code, we find it and adjust future claims before submission. That means you’ll face fewer headaches.
Faster Payments Mean Healthier Cash Flow
Steady cash flow means you can run your practice as payroll, supplies, rent — all those things depend on consistent revenue.
No follow-up means no flow. When AR follow-ups are neglected, payments get delayed, and that ripple effect can impact your entire operation. But when your billing team stays on top of every claim, payments move faster through the pipeline, and your practice enjoys smoother financial stability.
You Get Valuable Insights from AR Reports
Tracking your AR not just gives you information about payment collection but also helps to understand your billing health. Through regular AR aging reports, you can see how long claims have been outstanding and identify problem areas. For example:
- Claims older than 30 days indicate a slow-paying insurance company.
- Claims older than 90 days could mean there’s a systematic problem with your billing process.
To know about your practice billing health, M&M Claims Care provides transparent AR reports so you can see exactly where your revenue stands. We help you make smarter decisions about your billing strategy, not just manage numbers.
Reduces Write-Offs and Bad Debt
Without timely AR follow-ups, many claims end up being written off. This happened not because they weren’t valid, but simply because they aged out or got ignored.
A strong AR management system minimizes write-offs by keeping every claim active until it’s resolved, like paid, appealed, or corrected. That means you’ll earn more money and lose less in the billing shuffle.
The AR Follow-Up Process — Step by Step
What actually happens during AR follow-up? Let’s show you, in real time, how our experts handle it at M&M Claims Care.
Step 1: Claim Review
We start by going over all of the outstanding claims to see which are pending, rejected, or being reviewed. Each claim is categorized in payer, age, and status.
Step 2: Root Cause Analysis
After that, we find out the reason why a claim hasn’t been paid. Is it missing information? Was it denied due to a coding issue? Or did the insurance company simply not process it?
Step 3: Payer Communication
Our AR team gets in touch directly with insurance representatives. We follow up via phone or the portal until we receive clear responses and payment timelines.
Step 4: Correction & Resubmission
If a claim was denied or rejected, we fix the problem immediately, whether it includes updating codes, attaching additional documents, or appealing the decision.
Step 5: Documentation
Every action we take is documented properly. That means you have a complete record of what’s been done and when, without any guesswork or confusion.
Step 6: Reporting & Monitoring
Finally, we track performance over time through detailed AR aging reports and denial trend analyses. These insights help prevent the same issues from repeating in future claims.
How Long Should a Claim Stay in AR?
An ideal claim should be paid within 30–45 days. Anything beyond 60 days should be risky. AR follow-up helps ensure that your claims don’t linger longer than they should. If a payer consistently delays beyond that window, it’s a sign your billing partner should take a closer look at contract terms, documentation practices, or even reimbursement rates.
At M&M Claims Care, we monitor AR buckets like 0–30, 31–60, 61–90, and 90+ days to spot trends early and take action before those claims turn into write-offs.
The Hidden Costs of Ignoring AR Follow-Up
Most people think that they’ll get to those old claims later but that mindset can quietly cost thousands every month. Let’s see what happens when AR follow-ups are ignored:
- Cash flow slows down. Payments pile up, and you start feeling the crunch in payroll or supply expenses.
- Claim deadlines expire. Once a claim hits the payer’s filing limit, it’s gone for good.
- Denials go unresolved. Unattended denials become lost revenue.
- Patient relationships suffer. When patients get unexpected bills months later, it damages trust.
- Financial reports get skewed. Your revenue numbers no longer reflect reality.
How Professional AR Management Boosts Your Bottom Line
When you outsource AR management to experts like M&M Claims Care, you’re not just saving time — you’re reclaiming revenue.
Here’s how our team makes a difference:
- We follow up on every unpaid or denied claim with persistence and accuracy.
- We reduce your days in AR (the average number of days it takes to get paid).
- We identify and fix recurring billing or coding issues at the root.
- We improve your overall revenue cycle performance, which means you get paid faster and more consistently.
Our goal is simple: get you every dollar you’ve earned and help your practice grow without the constant stress of unpaid claims.
Common Challenges in AR Management and How We Solve Them
AR management isn’t easy. Here are a few common challenges practices face, and how M&M Claims Care helps overcome them:
Lack of Time
Most healthcare providers are already managing patients, staff, and administrative tasks. So, following up on old claims isn’t feasible for them.
At M&M Claims Care, we take over your AR entirely from claim tracking to payer communication so you can focus on what you do best: patient care.
Complex Insurance Rules
Each payer has its own set of rules, appeal time limits, and documentation requirements.
Our team stays up to date on every payer policy, ensuring your claims meet the latest standards before submission or resubmission.
Denial Management
Denials can impact the whole revenue cycle of your practice if not handled promptly.
We have a specialized denial management team that reviews each denial, identifies root causes, and appeals effectively to recover lost revenue.
Limited Visibility
Without clear reporting, you can’t see where your money’s stuck.
At M&M Claims Care, we provide transparent, easy-to-read AR reports that highlight outstanding claims, days in AR, and performance trends.
Why Choose M&M Claims Care for AR Follow-Up Services
When you partner with us, you’re getting more than just a billing service. You’re getting a dedicated team that cares about your success. Our AR specialists handle all payer types, including Medicare, Medicaid, commercial, and managed care.
- We don’t wait for payers to respond. We take the initiative, reaching out regularly until payment is secured.
- You’ll stay informed with clear, up-to-date AR and denial reports.
- We customize our strategy to your practice’s unique needs and specialties.
We understand that every dollar matters for your success, and our mission is to make sure you collect every one of them.
