In the ever-evolving world of medical billing, one term that often gets misunderstood is the AR follow up process. While it plays a critical role in ensuring healthcare providers are paid for the services they deliver, many professionals—especially those new to revenue cycle management—remain unclear about what AR follow-up really entails, how it’s different from general collections, and why it’s more than just “calling insurance companies.”
In this blog, we’ll correct some common misconceptions about the AR follow up process, explain its true purpose, and highlight how mastering it can dramatically improve a healthcare organization’s cash flow.
What Is the AR Follow Up Process?
At its core, Accounts Receivable (AR) follow up is the process of tracking and resolving unpaid insurance claims and patient balances. But it’s not just about calling payers randomly—it’s a systematic and strategic process that involves:
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Identifying unpaid or underpaid claims.
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Analyzing the root cause of the delay or denial.
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Contacting the payer to resolve the issue.
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Taking corrective action, such as resubmission or appeals.
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Updating records and maintaining communication logs.
Common Misconceptions About AR Follow Up
Let’s address a few major misconceptions:
1. It’s Just About Making Calls
Many believe AR follow-up is simply a call center activity. While follow-up agents do communicate with insurance companies, the process is analytical and investigative in nature. It requires understanding payer policies, claim coding, denial reasons, and even state-specific regulations.
2. It Starts After 90 Days
A widespread mistake is waiting too long to begin follow-up. In fact, AR follow-up should be proactive, not reactive. A professional team tracks claims as early as 15–30 days after submission, depending on payer guidelines.
3. It’s Only About Insurance Claims
Another confusion is thinking AR follow-up only applies to insurance AR. In reality, patient AR—which includes outstanding balances from co-pays, deductibles, and self-pay accounts—is also a vital part of the follow-up process.
4. It Doesn’t Affect Revenue Much
On the contrary, inefficient AR follow-up leads directly to revenue leakage. Delayed or unworked claims can age out, become ineligible for appeal, or be written off as bad debt. Efficient AR follow-up reduces days in AR, improves collection rates, and boosts the bottom line.
Key Components of an Effective AR Follow Up Process
To run a successful AR follow-up process, healthcare organizations need to:
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Segment AR: Divide aging reports into buckets (0-30, 31-60, etc.) to prioritize follow-up.
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Use Automation: Leverage RCM software to flag delays and assign tasks automatically.
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Train Staff: Ensure AR specialists are well-versed in denial codes, payer-specific rules, and communication best practices.
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Track KPIs: Monitor metrics like Days in AR, Claim Denial Rate, and First Pass Resolution Rate (FPRR).
Why Partnering with Experts Matters
For many practices, handling AR follow-up in-house becomes overwhelming. Staffing shortages, lack of expertise, or outdated systems can result in poor follow-up and delayed payments.
This is where experienced RCM providers make a significant difference. Their dedicated AR follow-up team not only shortens your payment cycle but also prevents revenue leakage through accurate claim analysis and timely resolution.
Final Thoughts
The AR follow up process isn’t just a background function—it’s the financial heartbeat of your medical practice. Understanding and optimizing this process can mean the difference between healthy cash flow and constant financial stress. By addressing common myths and adopting best practices, healthcare organizations can stay ahead of payer delays, reduce write-offs, and ultimately strengthen their revenue cycle.
