An experienced dental billing outsourcing company in U.S., Outsource Strategies International (OSI) provides comprehensive dental eligibility verification and other services to help practices run efficiently. Our services cover everything from patient scheduling and insurance verification and authorization to billing, payment collections, and accounts receivable management.
In today’s podcast, Amber Darst, our Dental Insurance Coordinator, discusses the importance of Aging Reports.
Hey, this is Amber Darst, Dental Insurance Coordinator from Managed Outsource Solutions. Today, I am going to be talking about the importance of Aging Reports.
00:10 - Introduction to Aging Reports
So do you want to improve your billing system, maintain a healthy cash flow in your practice and identify potential bad credit risks? Then consider making use of aging reports in your practice. It’s a great yardstick for measuring the overall financial health of your practice. Especially in a dental practice, these reports provide important information to the practice, such as unpaid patient balances and pending insurance claims.
Along with the unpaid balances, this report also shows the length of time that the amounts have been unpaid.
00:45 - 5 Standard Categories for Aging Reports
The standard categories for aging reports are:
- Current: which means invoices that are due immediately
- 0 – 30 days: invoices that are due within the next 30 days
Then there is
- 31-60 days: these are invoices that are a month past their due date
- 61 – 90 days: And this is invoices that are two months past their due date,
- Greater than 90 days: Invoices that are more than three months overdue
01:16 - So, Why Keep an Eye on Your Aging report?
As mentioned above, the aging report shows the total invoices due for each patient based on the age of the invoice. So, if a customer has several bills that were acquired at different times, an aging report will show how much is due and at what time. It allows practices that are sending hundreds of claims to insurers each week, but are unsure if they are paying you or not to keep track of the customers’ invoices, and have an idea of the total amount that’s owed, and when they are due. Here are a few other reasons why aging reports are important.
- 01:56 Notifying scheduling information: Aging reports provide guidance on scheduling and preventing future treatments that may add to the patients’ or the account’s unpaid balance by flagging those who have an overdue amount of 30 days or more.
- 02:12 It also Identifies Hiccups or Glitches: Due to technological errors, even though it is mostly accurate, sometimes patient statements weren’t even sent out at all. However, with aging reports you can avoid such situations, as these reports have a “last statement date” which help you identify the hiccups and glitches.
- 02:34 They track real-time information: Running an aging report each week or at least once a month is helpful because the changing numbers that the aging reports provide have valuable information. It provides real-time account information which helps you track current and past due balances on each account and ensures that nothing is slipping through the cracks, and the past due accounts are not going up.
- 02:59 And last, it provides better patient experience with transparency: You know the details of what’s owed to your practice and the accounts that are flagged between a practice and the patients’ accounts. This transparency would help in providing a better patient experience. All you have to do is reach out to your patients for the accounts that are 30 days past due and over, and make sure that they are receiving their statements and that there is no miscommunication.
If not weekly, it is recommended that at a minimum, a practice should generate an aging report once a month, so that they know the invoices that are due and they can notify the customers of invoices that are past their due date.
03:41 Rely on an experienced dental billing service provider?
Partnering with an experienced dental billing service provider is an ideal option to help do with your aging reports. Our experts know how to run a report and they can follow up on any pending claims bringing your AR down and improving the overall financial health of your practice.
And that’s all for today. Thanks for listening in!