Running a healthcare practice is not just about treating patients—it's also about managing your revenue. Unpaid claims hurt your business. Denials and write-offs are now costing providers more than ever. Each denied claim is a lost payment, and when no one follows up, it turns into a write-off—money you expected but never received. Recent data shows that healthcare providers lose tens of billions of dollars every year to "revenue leakage." This includes poor healthcare accounts receivable management, billing errors, denied claims, and uncollected patient payments. It slows down cash flow and puts extra pressure on your staff. A 2024 survey by Office Ally and Simbo AI found that 15% of claims are now being denied, up from 12% just a few years ago. That's a big increase and a clear sign that fixing this issue is more important than ever.
Claim denials don't just happen randomly. There are common causes behind most of them:
Know about the vital reasons behind claim denials and increased healthcare accounts receivable:
Inaccurate patient details, missing PA, outdated information, and coding errors are the major reasons behind the majority of claim denials. Any small mistake in your billing process can lead your practice to face payment delays. For example, if a prior authorization is missing for an MRI, the insurance company won't pay, even if the test was needed. Without follow-up, that payment is lost.
Fortunately, you can still improve your overall healthcare accounts receivable management services by following the measures mentioned below-
Top measures to improve healthcare accounts receivable:
1) Know what you are losing:
To start recovering lost money, you first need to understand what you're losing. Many practices don't know how much is stuck in unpaid claims. Ask simple questions like—how many claims get denied each month, how long they stay in AR, and how much has been written off this year. An AR aging report helps. It shows how long claims have been waiting. Pay close attention to those over 60 or 90 days—they are most likely to turn into write-offs.
2) Segment your denials:
You should always sort your denials into specific groups based on errors like wrong info or codes, payer delays, denials due to lack of medical necessity, and authorization-related. Then, you should prioritize the ones that are easy to fix so that you can receive quick payments.
3) Develop a strong denial management strategy:
Every practice needs a clear denial management process. Track denials every day. Assign staff to fix and resubmit claims quickly. File appeals when needed. Update your system to avoid the same mistakes again. If you don't have a team for this, think about outsourcing. A billing partner with experience in denial recovery can help you bring the money back.
4) Audit and work on your old claims again:
A denied claim from months ago can still be fixed. Many payers let you resubmit claims even after a year. Look back at denied claims from the last 6 to 12 months. Find the ones that were never appealed or followed up. This is a good task for slow periods or for an AR recovery team to handle.
5) Leverage data to prevent potential denials:
Every denial tells you something. Over time, you'll notice patterns. Maybe most errors come from one department. Always track vital information like which payers deny your claims often, codes that are frequently denied, etc, as this information helps you fix the issues from scratch.
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6) Don't take patient collection lightly:
Many healthcare practices still struggle to collect payments from their patients, and eventually, unpaid co-pays, deductibles, and out-of-pocket costs follow the path of getting written off. You should always focus on collecting payments during the visit, offer flexible payment plans, and send timely bills. If needed, work with a patient collections partner—but always make sure they treat your patients with care and respect.
7) Reconsider your write-off policy:
Not all write-offs are bad. Sometimes it costs more to collect a small balance than the amount is worth. But be careful not to rely on write-offs too often. Review your policy. Set a clear limit, and ask for approval before writing off large amounts. Track every write-off by reason and department. If one area is writing off too much, it's time to take a closer look.
Denials and write-offs don't have to be permanent losses. With the proper process, smart tools, and dedicated follow-up, you can recover a large part of that revenue. More importantly, you can stop future denials before they happen with a proper healthcare accounts receivable service. That means fewer headaches, better cash flow, and a stronger business overall. So if your AR report looks like a sea of unpaid claims, don't give up. It's not lost — it's waiting to be claimed. Turn your write-offs into what they were meant to be: dollars.
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