Medforce Blog

Is your AR Team a profit center?

July 26, 2017

Category: General


Your Accounts Receivable team’s mission should be to make money. Your team should be a profit center not a cost center.

Your AR team works on claims that have already been submitted that have either not been processed, or have been processed and are partially paid or denied.

So how does an AR team become a profit center?

You AR team is working to make sure the money for invoices produced is actually collected, whether from private payers, Medicare, Medicaid or self-pay at the appropriate reimbursement level, and they also ensure that nothing falls through the cracks. But there is a lot of work that goes into following up, repealing denials, and collections efforts.

It takes labor effort – and therefore cost – to manage these outstanding invoices. And if your costs of collecting are less than the income that comes in, you’re in the black. You shouldn’t be spending $50 to collect a $40 balance.

A large part of the success of an AR team is the way they prioritize work. Modern and successful AR teams don’t divide work by absolutes – by alphabet or even by payer. Prioritization needs to be a complex balance of effort, potential payoff/revenue, and the probability of actually collecting. You start there, but then you have to layer on top of that different pay rates for different people, skillsets, and time (the deadlines for each AR item to be worked as well as the time it takes for each person to complete a task.) It’s not a simple process. 

Business Process Management and workflow automation takes the guesswork out of success for your AR team. Items are prioritized based on strategic priority that leadership sets, balancing many factors at once. Your AR team comes in and immediately can get to work on the items that will return the best results for the company - and your bottom line. 


More resources on Accounts Receivable: 

Case study: Boosting Productivity in Accounts Receivable 

Video: Improve Visibility and Control in Accounts Receivable 

Product: Accounts Receivable Management App




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