The Hidden Cost of Unmanaged Accounts Receivable — and How to Fix It

For independent practices, accounts receivable (A/R) is often the most overlooked part of the revenue cycle. Claims get submitted, some get paid, some get denied — and the denied or delayed ones tend to sit. Out of sight, out of mind. But that "out of sight" pile of claims represents real money your practice has already earned but hasn't collected.

Why A/R Gets Neglected

It's not for lack of importance — it's a matter of bandwidth. Submitting new claims feels urgent because it's tied to this week's work. Following up on a claim from six weeks ago feels less urgent, even though it might represent hundreds or thousands of dollars.

Over time, this creates a backlog. And the longer a claim sits unworked, the less likely it is to ever be collected — many payers have strict windows for appeals and corrected claims, and once that window closes, the money is effectively gone.

What Unmanaged A/R Actually Costs You

Industry estimates suggest that a significant portion of a healthcare provider's total revenue can be tied up in A/R at any given time. For a solo or small practice, even a modest percentage of uncollected claims can add up to a meaningful amount over the course of a year — money that could go toward staff, equipment, or simply staying ahead of overhead costs.

Beyond the dollar amount, unmanaged A/R can also create cash flow unpredictability, making it harder to plan and budget with confidence.

Signs Your A/R Needs Attention

•        Claims older than 90 days are piling up

•        You're not sure how much is currently outstanding

•        Denials aren't being worked or resubmitted promptly

•        Payments and adjustments aren't posted consistently

•        No one has a regular routine for following up on unpaid claims

How to Get A/R Under Control

The fix isn't complicated, but it does require consistency:

1.     Review aging reports regularly — weekly or biweekly, not just at month-end

2.     Prioritize by age and dollar value — focus first on claims approaching their appeal deadlines or representing larger balances

3.     Work denials promptly — the faster a denial is addressed, the higher the chance of recovery

4.     Post payments accurately and timely — so your A/R picture is always current

5.     Track trends — recurring denial reasons often point to fixable issues upstream

Let Us Take This Off Your Plate

This is exactly the kind of ongoing, detail-heavy work that Oak & Willow Billing specializes in. Our A/R Management service provides consistent monthly follow-up on aged claims, denials, and underpayments — so your practice's hard-earned revenue doesn't slip through the cracks.

Not sure how much is sitting in your A/R right now? Get in touch — we're happy to take a look and help you understand where things stand.