You have just completed your aging report and your stomach is about to fell. That bucket of more than 90 days, which should be less than 15% of total A/R? It is currently at 35%. Aging accounts receivable totaling $280,000 are becoming more difficult to collect every day.
Moreover, you are experiencing problems with payroll, your cash flow, and you’re beginning to question whether some of this money will ever be returned….Phew….
The harsh reality is that 40% of medical claims are still unpaid after 120 days, according to aging reports. Your chances of collecting claims decrease with their age and chances of getting that money back drastically decline with each passing week.
However, the good news is that you can change this. You can significantly lower your aging A/R, improve cash flow, and restart your revenue cycle in just 30 days. This is your plan for a 30-day turnaround.
Comprehending Your A/R Aging Crisis (And Why It Occurred)
You must comprehend what you’re looking at before we can solve the issue.
A/R Aging: What is it?
Aging AR are the outstanding balances and reimbursements owed to healthcare providers. These dues not paid within the anticipated timeframe and are typically classified as 30, 60, or 90 days past. These unpaid claims are broken down into time buckets in your aging report to show you precisely how long money has been outstanding.
Typical A/R Aging Buckets:
- 0 to 30 days: Newly filed claims are still within the typical processing window
- 31 to 60 days: Claims requiring attention and follow up
- 61 to 90 days: Red flag area that needs to be addressed right away
- 90+ days: There is a significant chance that critical aging claims won’t be collectable.
The Reasons Your A/R Is Getting Older
Let’s be frank about how you got here:
- Claim Submission Delays: You’re starting the aging clock later if claims remain in your system for days or weeks before being submitted.
- Errors in Coding: Erroneous codes result in denials that wait for you to figure out what went wrong and submit again.
- Absence of Information: Claims that are not complete are rejected, remain unnoticed until they are corrected, and then be resubmitted.
- No Follow-Up System: Claims are filed and then forgotten in the absence of a follow-up system. No one is pursuing aging accounts, monitoring status, or identifying early denials.
- Understaffing: Because it feels more productive to prioritize new claims over older ones, your biller is overworked.
- Payer Postponements: Some payers are infamously slow, but those claims age indefinitely if you don’t follow up.
- Patient Collections: Although patient accountability is increasing, there isn’t a methodical procedure in place to collect what patients owe.
The average practice may lose $125,000 annually due to ineffective handling of unresolved claims. That is money you have already earned that is eluding you, not money you might earn.
Also Read: Understanding EMR vs EHR: What’s the Difference for Medical Billing?
The 30-Day Plan for Turnaround
This strategy is aggressive, targeted, and intended to yield quantifiable outcomes quickly. You will stop the bleeding and build momentum, but you won’t be able to fix everything in 30 days.
Week 1: Evaluation and Prioritization (Days 1–7)
Day 1: Create Your Whole A/R Aging Report
Get a thorough aging report from your practice management system. It should include all claim details, payer details, dollar amounts, patient balances, and each account’s aging bucket.
Print it out. Really? It is easier to see the scope of the issue and maintain focus when it is tangible.
Day 2: Determine Your Crucial Metrics
Assess your performance as of right now:
- Days in A/R (average daily charges divided by total A/R)
- Each aging bucket’s percentage
- Total amount spent over a ninety-day period
- By aging dollars, your top ten payers
Day 3: Determine Your Fast Wins
Your 90+ day aging claims should be sorted from highest to lowest by dollar amount. Your top priorities are these high-value claims. Fifty $300 claims are worth $15,000. Make a “Top 50” list of the 50 biggest aging claims that will affect cash flow the fastest.
Day 4: Sort Your Age-Related Claims
Divide your aging A/R into manageable groups:
- Payer accountability: Unresolved claims with insurance providers
- Patient accountability: Patients’ outstanding balances following insurance payment
- Rejected claims: Those that need to be appealed or resubmitted
- Details required: Claims awaiting clarification or supporting documentation
- Write-off applicants: Claims that are unlikely to be paid (but don’t discount them just yet)
Day 5: Root Cause Audit
Issues with claims submission, payer processing delays, and billing team inefficiencies can all be found in aging reports.
Search for trends:
- Are certain payers slow all the time?
- Do claims from one provider age more than those from another?
- Are some procedure codes consistently denied?
- Is the verification of patient eligibility failing?
These trends point to systemic issues that must be fixed if you want to avoid aging in the future.
Day 6: Resource Assessment
Take a real look at what your team can handle.
- How many hours can everyone actually spend on aging A/R recovery?
- Figure out which tasks you can put on hold for now.
- Do you need to ask for extra help or get approval for overtime?
- Maybe it’s time to think about bringing in some outside support.
Day 7: Create Your Action Plan
Write down your plan.
- Set daily targets for how many claims you’ll follow up on, and the dollar amounts you want to hit.
- Clearly lay out who’s doing what.
- Map out your follow-up schedule for each payer.
- Decide on weekly goals for bringing A/R down.
- Pick the success metrics you’ll use to track your progress.
Week 2: Aggressive Follow-Up and Recovery (Days 8-14)
Days 8-14: Go all in on your top 50 aging claims.
- Call the payers every day, don’t let up.
- Watch how each payer handles things.
- Track the trends.
- Spot the slowpokes or anyone dragging their feet.
For every claim: Call the payer and get a real update. Write down exactly what you need to fix the issue. Act right away, send more documents, file an appeal, whatever it takes.
Set your next follow-up date. Don’t skip it. Keep your tracking system up to date.
Follow-Up Strategies That Work:
- If a claim is “in process,” pin them down. Ask, “When will this get done?” and don’t accept vague answers.
- If they say they “never received” the claim, resend it with proof, and document everything.
- If they deny a claim, push for real reasons. Don’t settle for “insufficient info” or any generic excuse.
- If you have grounds, file your appeal the same day. If they want more info, get it together within 24 hours. Don’t let these claims linger.
Week 2 Daily Goals
- Reach out to 15-20 payers about old claims.
- Knock out 5-10 claims from start to finish.
- Resubmit 10-15 claims with corrections.
- Write down everything you do.
Week 3: Patient Collections and Systematic Recovery (Days 15-21)
Focus on Patient Balances: Patients owe more than ever these days. In fact, over 74% of healthcare providers say patients are shouldering more of the cost, and that’s turning into a lot of unpaid bills.
Days 15-16: Patient Statement Blitz
Send statements to everyone who’s got a balance older than 60 days. Keep it professional and clear, and give them plenty of ways to pay (online, by phone, mail, or in person).
Days 17-18: High-Balance Patient Calls
Call every patient who owes more than $500. Don’t send them to collections yet. Just talk to them, for real:
- Check they got the statement
- Make sure the balance is right
- Offer a payment plan if they need it
- Get a real commitment to pay and, if you can, get payment that same day
Days 19-21: Set Up Payment Plans
If you want patients to pay their bills, you have to be upfront. Spell out what they owe, and give them payment plan options that actually work. When someone has a big balance, don’t just hope they’ll pay it off all at once. Break it up, let them pay over time. This way, you keep money coming in and you won’t have to write off as much. Here’s how you can set it up:
- For balances under $1,000, offer short-term plans, think 3 to 6 months.
- For anything over $1,000, stretch it out, maybe 6 to 12 months.
- Always require automatic payments. It’s easier for everyone and people stick to it.
Get Your Systems in Shape
This week is about locking down your processes so old claims don’t pile up later. Every single day, scrub your claims for mistakes before you send them out.
No exceptions: Check insurance eligibility for every patient, every time they come in, not just once in a while. After you submit a claim, don’t just wait around, check the status within 48 hours so nothing falls through the cracks. And don’t forget to look at your payers once a week. See who’s paying on time and who’s holding things up. That way, you know where the bottlenecks are and you can do something about it.
Day 26-27: Technology and Automation Review
Take a close look at tools that actually make your life easier:
- Automated claim scrubbing software
- Electronic claim status checkers
- Patient payment portals
- Automated appointment reminders, including balance alerts
- Revenue cycle management dashboards
Using tech like RCM software really streamlines your workflow, cuts down on mistakes, and keeps your practice running smoothly.
Day 28-30: Build a System for Ongoing Monitoring
Set up regular A/R aging report reviews (every week or two) so you can spot problems early, before they snowball. Make it a habit:
- Every day: Send out clean claims and check the status of recent ones
- Every week: Go through the aging report and follow up with payers on older claims
- Every month: Dig into your metrics, see how payers are performing, and tweak your strategy if you need to.
Get your dashboard tracking the stuff that matters:
- Days in A/R over time
- How much sits in each aging bucket
- Collection rates by payer
- Denial rates, broken down by reason code
- The percentage of claims going out clean the first time
Getting Results Faster: What Actually Works
Insurance companies hope you’ll just give up and move on. Don’t give them that satisfaction. One call won’t cut it. Set up a follow-up plan and keep pushing:
- Day 30: Reach out the first time after you submit.
- Day 45: Follow up again.
- Day 60: If you’re still getting nowhere, ask for a supervisor.
- Day 75: Push for a formal review.
- Day 85: Still no answer? File an appeal. The key is to stay on them. Persistence pays off.
Write Everything Down
Take notes on every single interaction. Seriously, don’t skip this step. Jot down the date and time, who you talked to (grab their name and extension if you can), the current claim status, any next steps they mention, what timelines they promise, and when you need to follow up next. All these details matter. They’ll save you later if you need to file an appeal or show you’ve done your due diligence with claims.
Push Back on Denials: Don’t just take “no” for an answer. Some denials are worth fighting, especially these:
- Medical necessity denials, if you’ve got solid documentation
- Timely filing denials, when you actually sent everything on time
- Coding disputes, if your codes are spot-on and backed up
- Duplicate denials, when they’re not really duplicates at all
Don’t let these sit around. Handle denials and appeals right away, otherwise, those receivables just get older and harder to collect. Most practices only appeal about 40% of denied claims. The best ones? They appeal over 80% and win more than half the time. That’s the difference.
The Right-Off Decision
Write-offs can really hurt your practice’s bottom line if you’re not careful. Forgiving a patient’s debt without getting paid isn’t something to take lightly. Before you decide to write off any claim, make sure you’ve done your homework. Call the payer at least three times.
If you’re getting nowhere, ask to speak with a supervisor. If there’s still no progress, file a formal appeal if it makes sense. And keep track of everything you’ve done along the way. It’s okay to write off small balances, say, anything under $25. If it costs more to chase the money than it’s actually worth. But don’t use age as a reason to write off a claim. Write it off only when you’ve tried every realistic way to recover the payment.
Measuring Success: The Numbers That Matter
Keep an eye on these numbers every week during your 30-day push:
- Total A/R Reduction: You want to cut your total aging accounts receivable by at least 20% in 30 days. That means more collections, plus writing off what you honestly won’t get.
- 90+ Day Percentage: Take a hard look at those stubborn old balances. Drop the percentage of A/R over 90 days from above 25% to under 20%. If you’re starting lower, push from over 15% to under 10%.
- Days in A/R: Shorten your turnaround time. Trim 10-15% off your average days in A/R.
- Collection Rate: Check how well you’re collecting. Divide dollars collected by dollars billed. Strong practices hit 95% or better of what they expect to get paid.
- Cash Flow: This is the real test. Are you actually bringing in money faster? Can you pay your bills without breaking a sweat? That’s what matters.
When to Call for Backup: The RBS Innovators LLC Solution
Let’s be honest, you’re here because your accounts receivable is a mess. Maybe you can tackle this 30-day plan on your own. Or maybe you’re already in over your head. If any of this hits close to home, it’s time to bring in the pros:
- Your A/R over 90 days makes up more than 30% of your total receivables.
- You’re looking at more than $200K in aging claims.
- Your billing team can’t take on anything else.
- You’ve tried to fix this before, but it didn’t work.
- You don’t have the right systems or know-how to make this plan happen.
RBS Innovators LLC knows how to handle aging A/R and get your revenue cycle back on track. Practices just like yours count on us every day.
What Sets Us Apart
Our A/R recovery team lives and breathes aging claims. Seriously, that’s all they do, chasing down every dollar that’s overdue. This isn’t just another task on their list; it’s their main gig. We lean on smart tech, too. Think AI that scrubs claims, tools that check statuses automatically, and analytics that actually predict where trouble might pop up.
We don’t just work hard, we work sharp. And our process works. On average, we bring back 25–40% of old A/R that most practices had already written off. But we don’t stop there. As we recover your aging A/R, we tune up your entire revenue cycle so you don’t end up with the same problem again. That means:
- Real-time eligibility checks
- Claims that go out clean the first time (we’re talking 95%+)
- Staying ahead of denials before they become a headache
- Simple payment options for patients
- Reports every month so you always know where you stand
The results? You’ll see them fast:
- We usually cut your days in A/R by 30–40% in just three months
- The really old claims(over 90 days) drop below 15%
- Monthly cash collections jump by at least 25%
- Denials? We slash those in half
How We Get Results
- Week 1: Deep Dive First, we dig into your A/R from top to bottom. We spot quick wins and lay out a custom plan to get your money back fast.
- Weeks 2-4: Aggressive Recovery Now we’re in the thick of it. Our team chases down your old claims every day, following up and escalating wherever we need to.
- Weeks 5-8: Sharpening the Process Next, we get to the root of what’s causing your claims to age. We fix the issues so you don’t run into the same problems again.
Ongoing: Keeping You on Track
We don’t just walk away. We keep an eye on your revenue cycle, always looking for ways to keep things running smoothly.
Also Read: Medical Billing Automation: The Future of US Healthcare Revenue Cycle
The Real Cost of Waiting
Every month you put off dealing with aging accounts receivable, you’re losing real money, cash you could be putting in the bank. For most practices, poor handling of unpaid claims drains about $125,000 a year. Break that down, and it’s $10,400 slipping away every single month. But honestly, it’s even more painful than that.
Once receivables hit 90 days, your chances of actually collecting that money drop fast, and your practice’s financial health takes a real hit. Here’s how it shakes out:
- 0-30 days: you can collect 95-98%
- 31-60 days: that drops to 85-90%
- 61-90 days: now it’s 70-75%
- 90-120 days: only 50-60%
- 120+ days: just 25-35%
So, let’s say you have $280,000 sitting in that 90+ day pile. If it ages over 120 days, you’ll maybe collect $70,000 to $98,000. The rest ($182,000 to $210,00) just vanishes. Bottom line? Every week you wait, you’re bleeding thousands in lost revenue.
Act Now
Old accounts receivable don’t magically disappear. They just pile up, get tougher to collect, and start eating away at your practice’s finances. So, what’s your move? You’ve got two options.
- First, roll up your sleeves and dive into our 30-day turnaround plan yourself. Set time aside, get your team on board, follow the steps every day, and check your progress each week.
- Or, you can team up with RBS Innovators LLC. Let their experts chase down those overdue accounts while you stay focused on your patients.
Whichever route you choose, take action. Don’t wait. Start today.
See Where Your Money’s Stuck , Free A/R Aging Analysis
If your practice is tired of chasing old receivables, RBS Innovators LLC is here to help. We’ll take a hard look at your current aging report, show you exactly how much cash you’re leaving on the table, and point out the best places to recover it fast. We’ll walk you through proven ways to speed up collections and hand you a custom 30-day action plan, customized to your needs.
No strings attached. No sales pitches. Just straight answers and real solutions.