In healthcare revenue cycle management (RCM), proactive denial prevention is the gold standard for long-term success. It slashes rework costs and boosts clean claim rates to 95%+. But what about the $10-20 million already trapped in your existing Accounts Receivable (A/R)? Ignoring it drains cash flow and inflates Days in A/R— a key metric that screams inefficiency. Proactive A/R Follow-up is key.
The Medical Group Management Association (MGMA) sets clear benchmarks: Keep total Days in A/R under 40 and A/R over 120 days below 15%. Hitting these isn’t luck; it’s strategy. Outdated methods like alphabetical queuing or blanket “90-day bucket” work waste time on dead-end claims while high-yield ones age into oblivion.
A/R Follow-up Best Practices
Enter A/R follow-up best practices: a data-smart shift that prioritizes winnable accounts, cleans up your books, and frees staff for high-impact work. At Ameridial, our HIPAA-compliant BPO and AI-driven contact centers have helped providers reclaim 20-30% of stalled A/R by applying these exact tactics. In this guide, we’ll break down the four core A/R follow-up best practices, plus why front-end fixes are your secret weapon. Ready to reclaim your revenue?
Why Mastering A/R Follow-Up Best Practices Matters Now
Stagnant A/R isn’t just a number—it’s a cash crunch. The average denial rework costs $44 per claim, but aged A/R balloons that to $118+ with added staff hours and write-offs. In 2025, with payer scrutiny at an all-time high (think AI-powered audits from CMS), inefficient follow-up risks 15-25% revenue leakage.
Smart A/R follow-up best practices flip the script: Segment ruthlessly, automate insights, and act decisively. Providers using these see Days in A/R drop 10-15 days on average, per HFMA data. Let’s dive into the essentials.
Best Practice 1: Segment and Prioritize Your Follow-Up
Chasing every claim equally is a loser’s game. High-performing teams use A/R follow-up best practices to slice and dice their portfolio, zeroing in on quick wins.
- Aging Buckets: Divide into 0-30, 31-60, 61-90, and 90+ days. Fresh claims (under 30) often resolve with a single call—don’t let them harden.
- Payer-Specific Focus: Batch by payer (e.g., all UnitedHealthcare 60-day claims). Spot trends like systemic delays or denial codes, fixing root causes at scale.
- High-Value Claims: Tackle $5K+ accounts first, regardless of age. A resolved high-dollar claim can cover hours of low-value chasing.
- Bulk Trends: Hunt denial patterns (e.g., 200 claims rejected for missing modifiers). Submit bulk appeals to resolve hundreds in one go.
Pro Tip: Use dashboards to visualize segments—tools like RPA flag “hot” accounts daily, cutting manual triage by 40%.
Best Practice 2: Run Frequent Reports and Assign Responsibility
Data is your A/R compass, but stale reports lead you astray. A/R follow-up best practices demand weekly (or daily) aging snapshots to track segments in real time.
Pull metrics like:
- Net Days in A/R by payer.
- Denial rates by bucket.
- Collection rates for high-value claims.
Reports alone gather dust. Assign owners: “Sarah owns Blue Cross 31-60 days; Mike handles bulk appeals.” This accountability model boosts resolution rates by 25%, as teams own outcomes.
At Ameridial, our AI analytics generate these reports automatically, with built-in task routing to your staff or our contact center pros—ensuring nothing slips.
Pro Tip: Set alerts for spikes (e.g., 20% A/R jump in 90+ days) to trigger immediate huddles.
Best Practice 3: Define Clear Write-Off and Collections Policies
Bloated A/R warps your view: A 365-day claim denied thrice isn’t revenue—it’s a drag. A/R follow-up best practices include ironclad policies to purge the uncollectible.
- Write-Off Thresholds: Auto-write after three appeals or 180 days, unless high-value (e.g., $10K+ gets external review).
- Collections Handoff: Escalate to agencies at 120 days for viable bad debt, but only after exhausting appeals.
- Policy Review: Audit quarterly, adjusting for payer trends (e.g., Medicare’s shorter timelines).
Clean books mean accurate KPIs and laser-focus on collectables. Providers with these policies see 120+ day A/R shrink to under 10%.
Pro Tip: Document everything in your PM system—it’s audit armor and ROI proof for leadership.
Best Practice 4: Fix the Front-End (The Ultimate A/R Hack)
The best defense? A bulletproof offense. A/R follow-up best practices shine brightest when paired with upstream prevention, keeping claims out of A/R altogether.
- Clear Patient Communication: Pre-service estimates via portals or calls flag deductibles early, lifting POS collections by 18-25%.
- Accurate Insurance Verification: Real-time checks at scheduling catch eligibility gaps, ensuring 90%+ first-pass acceptance.
Invest here, and Days in A/R plummet naturally. Ameridial’s automated verification bots integrate seamlessly, turning front-end sloppiness into a non-issue.
Pro Tip: Run monthly front-end audits—correlate verification accuracy with A/R inflows for quick wins.
The Deeper Implication: A/R Follow-Up Best Practices as Data Science
Forget the old “phone monkey” stereotype—A/R is now analytics. Segmenting, trend-spotting, and prioritizing? That’s data science, not drudgery.
AI elevates it: Tools auto-scan for high-yield claims, predict denial risks, and even draft appeals. At Ameridial, our AI-powered BPO does just that—working your A/R with 30% higher efficiency than manual teams. It’s the tech upgrade your A/R follow-up best practices deserve.
Implement A/R Follow-Up Best Practices with Ameridial
Since 1987, Ameridial has streamlined RCM for providers nationwide. Our contact centers and AI solutions make these best practices plug-and-play: From segmentation to front-end fixes, we handle the heavy lifting while you focus on care.
Contact Ameridial today for a free A/R health check. Let’s get your Days in A/R under 40—your cash flow can’t wait.
Ameridial: Connecting payers, providers, and patients with secure, attentive care.
