Top 5 Steps to Effective AR Follow-Up in Medical Billing

Last Updated on August 7, 2025

Every unresolved claim has a backstory.

Maybe it was a missing modifier. Maybe the documentation didn’t quite match the payer’s expectations. Or maybe it just slipped through the cracks during a busy week.

For those of us who’ve spent years in healthcare operations, we know AR follow-up isn’t just about ticking boxes, it’s about protecting the revenue you’ve already earned. It’s about making sure your team’s hard work translates into actual collections.

Here’s a quick example:

A multi-specialty clinic was seeing a rise in denials from a major commercial payer. The internal billing team flagged the issue, but with hundreds of claims in play, they couldn’t isolate the root cause.

After partnering with an experienced RCM firm, they conducted a focused AR audit. Each denial was categorized, corrected, and resubmitted. Within 60 days, they recovered 40% of the previously written-off revenue.

That kind of result isn’t about luck, it’s about having the right process, the right tools, and the right people in place.

Let’s be honest, AR follow-up isn’t just tedious, it’s a full-time battle. And here’s why:

•  Billing is getting more complex than ever. A 2025 survey of U.S. healthcare executives revealed that billing complexity is now the #1 challenge in revenue cycle management, followed closely by staffing shortages.
• Data is everywhere, but not always helpful. With so many systems and departments involved, workflows are fragmented. That means claims get stuck, denials go unnoticed, and decisions are delayed.

Outsourcing is on the rise. To follow the AR process and make it a success, billing companies have started shaking hands with specialized RCM firms. It’s a strategic move, one that helps reduce operational pressure, improve claim accuracy, and speed up collections. By partnering with experts who live and breathe revenue cycle management, billing teams can focus on what they do best while ensuring the financial health of the practice stays strong.

So, what does successful AR follow-up actually look like in practice?

Whether you’re managing a small clinic or a multi-specialty group, these five steps are designed to help you bring structure, consistency, and results to your AR process without burning out your staff or losing sight of the bigger picture.

After seeing how RCM companies are driving real results, it’s worth understanding the process behind it. AR follow-up isn’t just one task; it’s a structured workflow that unfolds in five key steps:

5 Steps to Effective AR Follow-Up

Behind every successful billing team is a solid AR follow-up strategy. These five steps are simple, practical, and proven to make a real difference in collections and cash flow.

These 5 steps are must-haves for effective AR follow-up,

•  Step 1: Streamline Your Billing Process
• Step 2: Verify Insurance Information Upfront
• Step 3: Timely Submission of Claims
•  Step 4: Proactive AR Follow-Up
• Step 5: Trained Staff and Their Expertise

Step 1: Streamline Your Billing Process

Every successful AR strategy starts with clean billing. That means getting the charges right, documenting clearly, and coding accurately right from the point of care.

In real-world settings, it’s often the small things that cause the biggest delays. A missing modifier, a vague note, or a mismatch in diagnosis coding can turn into weeks of back-and-forth with payers. And when these issues pile up, your team ends up spending more time fixing than collecting.

One way to avoid this? Make sure you’re billing, and clinical teams are working for the same system. When your EHR and billing workflows are aligned, it’s easier to catch errors early and keep claims moving.

It also helps to run regular billing audits. Not just to spot mistakes but to see what keeps happening, where staff might need support, and how to stay ahead of compliance issues.

When this foundation is strong, denials drop, and reimbursement cycles move faster.

Step 2: Verify Insurance Information Upfront

Insurance verification errors are responsible for over 25% of claim denials in U.S. healthcare. That’s why a reliable RCM company takes a proactive approach to ensure accuracy before the service is even delivered.

Before a patient is seen, it’s worth taking a few extra minutes to confirm their coverage.

Is the plan active?
Are there any pre-auth requirements?
What’s actually covered?

Billing teams that stay ahead of this step save hours later. They check eligibility in real time, confirm pre-auths for high-risk procedures, and document everything clearly.

It’s a small effort upfront that saves a lot of cleanups later.

Step 3: Timely Submission of Claims

One of the most common challenges in revenue cycle management is the delay in claim submission, often caused by fragmented workflows, incomplete documentation, or manual bottlenecks. These delays can quietly erode your revenue cycle and disrupt cash flow.

That’s why leading RCM companies treat timely submission as a strategic priority, not just a task.

They implement:

• Workflow discipline to ensure claims are submitted immediately after documentation is finalized
• Technology-driven tracking to monitor submission timelines and flag bottlenecks
• Automation to streamline claim creation and reduce human error
• Pre-submission checks to ensure claims are clean and complete

This proactive approach leads to faster reimbursements, fewer denials, and stronger financial performance.

Step 4: Proactive AR Follow-Up

When claims go unpaid or underpaid, the difference between lost revenue and recovered income often comes down to how consistently and smartly you follow up.

Strong AR teams don’t wait for the system to catch up. They track every denied or underpaid claim, engage with payers and patients, and follow a structured process to resolve issues quickly.

Here’s what that looks like in practice:

• Monitor claims closely to catch denials and underpayments early
•  Engage payers and patients directly to resolve issues before they escalate
• Use automation tools to reduce manual errors and keep the process moving
• Look for patterns systemic issues that may be causing repeat denials
• Document everything to support appeals and future audits

This kind of follow-up doesn’t just improve collections it strengthens payer relationships, reduces rework, and helps your team stay ahead of delays.

It’s not just about chasing payments. It’s about building a process that works every time.

Step 5: Trained Staff and Their Expertise

Skilled billing professionals are more than task-doers, they’re problem solvers. Their expertise directly impacts collections, compliance, and patient experience.

Key strengths of a trained AR team:

• Accuracy in coding and documentation, leading to fewer denials
•  Efficiency in handling complex claims and appeals
• Confidence in patient interactions, improving trust and satisfaction
• Commitment to continuous learning, keeping your practice ahead of changes

With the right people in place, your revenue cycle becomes a strategic asset not just a back-office function.

Cultivating Financial Health Isn’t a One-Time Task, It’s Ongoing Care

AR follow-up isn’t just about chasing payments it’s about protecting the revenue your practice has already earned.

When done consistently, it reduces aged receivables, resolves denials faster, and brings predictability to your financial operations.

AnnexMed understands this well. Our team takes a hands-on approach to AR, combining structured workflows with deep payer knowledge to resolve issues quickly and thoroughly.

With AnnexMed, your billing team gets the support it needs, and your clinical staff stays focused on care not collections.

FAQs of AR Follow up