In the fast-paced world of healthcare, ensuring accurate patient care is only half the battle. The other half? Getting paid for the services you provide. That’s where AR Management (Accounts Receivable Management) plays a crucial role.

Whether you run a small clinic or a large medical billing company like Med Brigade, managing your accounts receivable effectively is key to keeping your revenue cycle healthy and your operations running smoothly. In this article, we’ll break down what AR Management is, why it’s important, and how you can improve it.

What Is AR Management in Medical Billing?

AR Management refers to the process of tracking, managing, and collecting payments owed to a healthcare provider. This includes money from insurance companies, government payers like Medicare and Medicaid, and patients.

In simple terms, accounts receivable are claims that have been submitted but not yet paid. The longer these claims go unpaid, the more they can affect your cash flow and bottom line.

The AR Cycle: How It Works

The AR process begins the moment a healthcare provider delivers a service. Here’s a simplified version of the cycle:

1. Service is provided to the patient.

2. Claims are created with appropriate CPT and ICD-10 codes.

3. Claims are submitted to insurance companies.

4. The provider waits for reimbursement or denial.

5. If a claim is denied or partially paid, it must be reviewed, corrected, and resubmitted.

6. Remaining balances are billed to patients or followed up on.

Good AR management ensures that this cycle moves quickly and efficiently.

Why AR Management Is Critical for Medical Billing Companies

At Med Brigade, we believe that clean claims are important — but timely follow-up on unpaid claims is just as essential. Here’s why AR management should never be overlooked:

1. Improves Cash Flow

Cash flow is the lifeline of any healthcare organization. The longer your claims sit unpaid, the more it impacts your ability to pay staff, invest in resources, or grow your business. Proper AR management ensures consistent revenue.

2. Reduces Bad Debt

Accounts that go unpaid for too long often end up as write-offs. When you actively manage your AR, you catch problems early—before they become financial losses.

3. Helps Identify Billing Issues

AR reports reveal patterns. If a certain payer consistently denies claims for the same reason, it’s a sign there’s an issue with documentation, coding, or eligibility checks. These insights allow you to fix the root problem.

4. Improves Relationships with Payers and Patients

Effective AR teams communicate regularly with payers and patients. Timely follow-ups show professionalism and make it easier to resolve issues quickly, leading to better relationships and smoother operations.

Common Challenges in AR Management

Managing AR isn’t always easy. Here are a few obstacles that billing teams often face:

• Delayed payments from insurance companies

• High volume of denials

• Unclear documentation or coding errors

• Lack of follow-up on aging claims

• Patient non-payments or confusion over bills

At Med Brigade, we address these issues head-on with a proactive AR team and clear workflows.

Key Metrics in AR Management

To manage AR effectively, you need to track the right data. Here are some important metrics every medical billing company should monitor:

Average Days in AR

This shows how long it takes to collect payment after a claim is submitted. A good benchmark is under 40 days.

AR Aging Report

This report breaks down how much money is outstanding within different time frames (e.g., 0–30 days, 31–60 days, etc.). The older the claim, the harder it becomes to collect.

Percentage of AR Over 90 Days

This shows how much of your revenue is tied up in long-overdue claims. Ideally, this should be under 15%.

Denial Rate

High denial rates usually point to problems in coding, documentation, or claim submission. A low denial rate is a good sign that your billing process is working well.

How Med Brigade Handles AR Management

At Med Brigade, we take AR management seriously because we know it directly impacts our clients’ success. Here’s how we make AR work:

Dedicated AR Follow-Up Team 

Our team monitors all unpaid claims daily, categorizing them based on their status and following up as needed — whether it's calling insurance companies or reviewing denial reasons.

Detailed AR Aging Reports

We provide clients with detailed aging reports so they always know where their money is and what’s being done to collect it.

Root Cause Analysis

Instead of just fixing denials, we identify why they’re happening and implement solutions to prevent them in the future.

Resubmission and Appeals

When claims are denied, we don’t stop. Our team resubmits corrected claims promptly and files appeals when necessary to ensure maximum reimbursement.

Patient Collections

We handle patient billing clearly and professionally, offering easy-to-understand statements, reminders, and payment options.

Best Practices to Improve AR Management

If you’re looking to improve your own AR process, here are a few proven strategies:

1. Follow Up on Claims Early and Often

Don’t wait 60 or 90 days to follow up. The earlier you follow up, the better your chances of collecting payment.

2. Automate Where Possible

Use billing software that helps track claim status, send alerts, and generate reports. Automation can save time and reduce human error.

3. Train Staff Regularly

Whether it’s coding, insurance updates, or denial management, make sure your billing team stays up to date with industry changes.

4. Keep Clear Documentation

Poor documentation is a major cause of claim denials. Make sure every service is backed by proper notes and coding.

5. Review AR Reports Weekly

Make it a habit to review AR data each week. Spotting trends early can save you money and prevent long-term revenue issues.

Conclusion

Strong AR Management isn’t just about collecting payments — it’s about keeping your business healthy and future-proof. At Med Brigade, we’ve seen how effective AR strategies reduce denials, speed up cash flow, and give our clients peace of mind.

If your claims are sitting unpaid or your cash flow is inconsistent, it might be time to take a closer look at your AR process. With the right team, tools, and attention, you can take control of your accounts receivable — and your revenue.