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For any healthcare provider, staying on top of revenue is as important as delivering quality patient care. One of the most critical tools for maintaining financial health is the monthly review of Accounts Receivable (A/R). Yet many practices either overlook this essential process or don’t have the systems in place to manage it effectively. When done right, monthly A/R reviews can uncover revenue gaps, identify billing inefficiencies, and provide actionable insights that help optimize the revenue cycle.
At Thrive Medical Billing, we emphasize the power of consistent A/R monitoring. As a professional medical billing company, we understand that regular A/R reviews are the foundation of sustainable revenue management. In this article, we’ll explore what monthly A/R reviews are, why they matter, how to perform them, and how a strong medical billing company can help you master this critical task.
Accounts Receivable (A/R) refers to the outstanding payments owed to your practice for services rendered. These unpaid balances can come from both insurance payers and patients. A/R is typically categorized by "aging buckets," which reflect how long the balance has been outstanding—usually in 30-day increments (0–30 days, 31–60 days, etc.).
A/R can also be broken down by payer type (commercial insurance, Medicare, Medicaid, self-pay) or service type (office visits, procedures, telehealth, etc.).
When your practice has a high or aging A/R, it can indicate deeper issues—such as claim denials, delays, poor collections, or inefficient billing processes.
While quarterly or annual reviews may help with long-term planning, monthly A/R reviews are essential for real-time course correction. Here’s why they matter:
By reviewing A/R every month, you can spot trends and problems before they get out of control. For example, if certain claims are being denied repeatedly or a payer is consistently late in processing, you’ll notice it quickly and take corrective action.
Timely A/R reviews help reduce the average number of days in A/R, leading to faster reimbursements and a steadier revenue stream. Consistent cash flow allows you to cover operating costs without relying on credit or reserves.
Many denials can be resolved successfully if addressed promptly. Monthly reviews help ensure that denied or rejected claims don’t fall through the cracks.
When your A/R data is up-to-date and accurate, you can forecast revenue more reliably and make better business decisions about staffing, expansion, or investments.
Regular A/R audits help maintain billing accuracy and ensure that your practice is compliant with payer requirements and healthcare regulations.
At Thrive Medical Billing, we provide monthly A/R analysis for all our clients, complete with actionable recommendations to help improve collections and reduce outstanding balances.
A good monthly A/R review isn’t just about looking at total outstanding balances. It’s about drilling down into specific data points to understand performance. Here are the most important metrics to track:
This report shows how much money is owed to the practice and how long it has been outstanding. Pay close attention to balances over 90 or 120 days, which are less likely to be collected.
This KPI shows how long, on average, it takes to collect payment. Most practices aim for under 40 days.
This reflects the percentage of billed charges that are actually collected. A healthy collections rate typically exceeds 95%.
Look at the number and percentage of claims being denied, the reasons for denials, and how quickly they are appealed or corrected.
Identify which payers are consistently slow or problematic and determine whether specific coding or documentation issues are at fault.
Track self-pay and patient responsibility segments to ensure your front desk and billing team are following up appropriately.
Our team at Thrive Medical Billing generates easy-to-read, customized monthly reports with all of these KPIs clearly outlined, so clients can focus on improving their bottom line.
Here’s a step-by-step guide to conducting an effective monthly A/R review, either internally or in partnership with a medical billing company.
Start by generating A/R aging, denial, and payer performance reports. Make sure your data is current and clean.
Break down your A/R into 0–30, 31–60, 61–90, 91–120, and 120+ day segments. High amounts in the older buckets indicate trouble areas that need immediate attention.
Look for trends in claims from specific payers or related to certain services. Are there patterns in denials? Are some payers consistently slow?
Evaluate how many claims are denied each month, the reasons, and the status of resubmissions or appeals.
Make sure balances due from patients are being addressed through statements, calls, or collection efforts.
Review your performance compared to industry benchmarks or previous months. This helps identify progress and persistent problems.
Based on your findings, develop an action plan. This may include staff training, process changes, follow-up tasks, or escalating issues with specific payers.
At Thrive Medical Billing, we believe that proactive A/R management is the backbone of strong revenue cycle performance. Here’s how we help our clients get the most out of their monthly A/R reviews:
We generate detailed A/R reports that highlight aging balances, denials, and performance by payer and procedure. These reports are customized to your specialty and goals.
Our team doesn’t just give you numbers—we interpret them. We explain what the data means, why certain metrics are off, and how to improve them.
We log every denial, identify root causes, and initiate appeals or corrections quickly. This keeps claims moving and revenue coming in.
We flag trends like underpayments, repeated delays, or policy changes that affect your reimbursements and take steps to resolve them.
We coordinate with your front office or manage patient billing ourselves to ensure that outstanding patient balances are not neglected.
Each month, we schedule review meetings with our clients to go over the reports, discuss problem areas, and agree on action steps.
Working with a professional medical billing company like Thrive Medical Billing means you’ll never be left guessing where your money is or why claims are unpaid.
Even practices that try to stay on top of A/R often run into common issues:
Older claims are often ignored due to limited time or staff.
Fix: Assign a team (or work with a medical billing company) to tackle claims over 90 days.
Without a system, claims and patient balances fall through the cracks.
Fix: Use software or outsourcing to automate reminders and follow-ups.
Incorrect coding, missing documentation, or eligibility issues lead to denials.
Fix: Train staff, use software tools, and perform monthly audits.
Many practices lack proper reporting tools or knowledge to interpret data.
Fix: Partner with experts like Thrive Medical Billing to gain insight and actionable reports.
Monthly A/R reviews are not just administrative tasks—they are strategic opportunities to improve your practice’s financial health. They help you catch problems early, boost collections, and provide the insights you need to make informed decisions.
When you partner with a professional medical billing company like Thrive Medical Billing, you get more than just claim submissions—you gain a dedicated partner focused on your success. Our A/R review process is comprehensive, transparent, and results-driven.
Let Thrive Medical Billing help you take control of your revenue cycle, one month at a time. Contact us today to learn how we can simplify your billing process and strengthen your cash flow.
