What is the purpose of running an insurance aging report each month?

Running an insurance aging report each month serves a critical function in managing the financial health of a healthcare practice. The primary purpose of this report is to determine which claims are outstanding from third-party payers.

When claims are submitted to insurance companies, they don't always get processed immediately. Some may be delayed due to various reasons, such as errors in billing, requests for additional information, or other administrative issues. By reviewing the aging report, billing and coding specialists can identify outstanding claims and take appropriate actions, such as following up with insurance companies or re-submitting claims. This proactive management of unpaid claims is essential for maintaining steady cash flow and ensuring that the practice receives payment for services rendered.

The other options, while important aspects of healthcare management, focus on different areas that do not directly pertain to the primary objective of an aging report. Calculating total revenue for the month, evaluating staff productivity, and identifying profitable procedures are all valuable processes, but they do not directly address the need to track and manage outstanding claims specifically.