Streamline Accounts Receivable in the New Year with these Tips

Updated November 13, 2025
Originally Published January 8, 2024

Optimizing accounts receivable (A/R) is a challenge for every medical practice and billing company. A swift revenue cycle benefits both the company and the healthcare client. But using automated processes in accounts receivable isn’t just about speed; it also strengthens your company’s overall financial health. 

To kick off the new year with improved efficiency, here are some tips to leverage technology and tighten up the A/R process:

Automate Balance Reminders and Invoices

Eliminate human error and avoid delays by automating balance reminders. An automated system notifies patients about outstanding balances at the optimal time without human intervention. This decreases your workload while simultaneously increasing payment rates. 

Over 36% of U.S. households have some type of medical debt, 21% is past due. Automated notifications that include links to payment portals make it easier for patients to pay. 

But automation doesn’t have to mean impersonal. Automated reminders can also include personalized messages and payment instructions. Links to invoices can be attached with clear breakdowns of services rendered and balances due, ensuring transparency. This combination of automation and clarity enhances patient satisfaction while decreasing the administrative load, freeing your staff up for more complex tasks.

Ensure Built-In HIPAA Compliance 

Because online payment solutions are so user-friendly, patients are more likely to pay promptly. They also make compliance with healthcare regulations like HIPAA easier. Medical billing companies must ensure that their online platforms have the latest security measures to protect patient information. By integrating payments into your current billing systems, payments are reflected in real-time, reducing the chances of billing errors and time-consuming, costly disputes.

Prioritize User Experience with Online Payments

User experience is crucial. Make sure your online payment portal is mobile-friendly, intuitive, and supports multiple payment methods. 

With online shopping and instant transactions so commonplace, healthcare payments should be just as easy and straightforward as buying a book online. Your payment process needs to be simple and convenient to encourage timely collections. 

User-friendly online payment systems enable patients to settle their bills with just a few clicks, anytime, anywhere. It creates a hassle-free environment with multiple payment options such as instant card payments, digital wallets, or automated bank transfers.

Simplifying the payment process also means providing clear, itemized bills that patients can understand and review before making a payment. This transparency reduces confusion and disputes that delay collecting your revenue. Intuitive interfaces let patients view their billing history, download receipts, and manage payment methods. Quite simply, it empowers patients to handle their healthcare finances better.

Integrate a Patient Responsibility Estimator

Patients who receive an accurate cost estimate before or at the time of service are more likely to cover part of their bill quickly. A patient responsibility estimator does just that, reducing the workload for healthcare providers and taking the guesswork out of the process for patients. And it minimizes post-visit collections, giving staff more time for other, value-added tasks. 

When properly configured, this tool fetches real-time updates on coverages and deductibles, maximizing the accuracy of estimates. Providing accurate cost information builds trust, strengthens patient-provider relationships, and gives patients more control over their healthcare expenses.

Promote At-Visit Collections

Take advantage of patient visits to collect payments whenever possible. This improves cash flow, reduces A/R days, and allows staff to clarify any questions or issues upfront. 

Medical billing companies can support healthcare providers by training front desk staff, providing scripts, and creating workflows to make the process consistent, efficient, and professional. 

Automated payment plans for larger balances can be set up before patients leave the office. This is also the ideal time to make sure patients understand policies regarding payment responsibilities. Consider offering incentives for staff who excel at collections and encourage a proactive financial culture.

Streamline Appointment Management

Appointment reminders and clear communication prevent revenue loss by reducing no-shows. Systems can automatically send reminders via text, email, or phone calls, based on patient preference. Efficient scheduling software also enables last-minute fill-ins for cancellations, maximizing potential revenue opportunities.

On top of these efficiencies, automated appointment systems collect data that provide valuable insights. Medical billing companies can help providers by analyzing appointment patterns to identify the root causes of missed appointments and then develop strategies to address them.

Encourage Timely A/R Follow-up

The faster A/R issues are resolved, the better your cash flow. To optimize follow-up, medical offices should use a structured, staggered process. First, address the most recent receivables with the highest recovery probability. 

Follow-up tasks can then be scheduled for accounts that reach certain aging milestones, with escalations for accounts at risk of becoming bad debt. A robust follow-up process should include personalized contact for larger balances and automated, tailored messaging for smaller or overdue accounts.

Analyze A/R  for Strategic Insights

A/R analytics transforms raw data into actionable insights. By tracking and analyzing metrics like the average days in A/R, claim denial rates, and patient payment trends, your company can pinpoint operational inefficiencies and identify opportunities to improve. 

Advanced analytics can also forecast future trends, allowing you to be proactive in A/R management strategies. Sharing these insights with healthcare providers helps them understand the financial health of their practice, improve billing operations, and make smarter decisions for long-term growth. 

Understand the Declining Value of A/R with Age

The value of accounts receivable decreases as it ages. “Days in A/R” indicates the average number of days it takes to collect payments and is a key metric of financial health.

As a general rule, A/R over 60 days is problematic, as receivables become less collectible over time. In fact, about 13.5% of multispecialty practice’ A/Rs are over 120 days old. Most accounts this old end up written off. A/R under 40 days typically reflects healthy cash flow and efficient billing operations.

Monitoring “Days in A/R” closely leads to faster revenue recognition, better cash flow management, and improved financial stability. Staying on top of this metric lets you strategically prioritize accounts, maintain predictable revenue streams, and minimize uncollected debt.

Start the New Year with a Solid A/R Plan

The new year is the perfect opportunity for medical offices and billing companies to revamp A/R strategies and set the tone for successful revenue cycle management. By automating systems and enabling patients to be proactive, you can reduce overdue payments and streamline collections. 

Now is the time to assess your technology stack, client expectations, and analytics. Start the new year with optimized A/R processes and reap the benefits all year long.