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The Most Important Billing Reports in Revenue Cycle Management

The Most Important Billing Reports in Revenue Cycle Management

This is a multi-part series. Please click the dots below to cycle through each article. 

Part 1

RCM (Revenue Cycle Management) involves tracking claims, confirming payment is received, and following up on denied or unpaid claims to maximize your office revenue. Generating medical billing reports can help you recognize the health of your practice. The first report we are covering this week is your Accounts Receivable or A/R report. Understanding your A/R report is crucial to ensuring your RCM procedures are efficient and effective. Lets take a look at the most important billing reports in Revenue Cycle Management.

Accounts Receivable Aging Report

What does this report tell me?

The A/R aging report will give you a breakdown of insurance and patient balance claims based on the number of days they have been unpaid or in receivables. Most insurances, aside from government insurances, take approximately a month to pay. This report gives you a generalized look at where payment issues might be coming from. This report should give you a look in both dollar amount and by percentage. With just a brief look at the 150 days plus column on this report, a knowledgeable manager or billing company can tell whether a practice’s billing department is doing well.

They should question:

Is there a large dollar amount there?

Is there double-digit percentage outstanding?

A Closer Look

Every AR report could be formatted differently, and appearance may vary depending on which system you are using. The aging buckets may vary, some can carry out between 180-360 days, but will still provide the same information.

Our example below provides a breakdown of claims from: 0-30 days, 31-60 days, 61-90 days, 91-120 days, and greater than 120 days. As you can see our report is broken down by insurances and “Self-pay” or patient balances.

A common question I receive is: How do I know what my percentages should look like?

Answer: It is a great idea to purchase the annual average benchmarking report from the Medical Group Management Association (MGMA). They publish an annual report benchmarking the AR for different medical specialties. Medicare (CMS) also puts out a similar report that is free that can be used as a overall benchmarking tool.

Report: Aging as of 09/05/2018
Local Reporting Category # of Charges <31 31-60 61-90 91-120 >120 Total
AETNA 22  2,650.00
BCBS 152  30,817.20
CIGNA 34  7,080.00
HUMANA 4  0.00
MEDCOST 11  550.00
MEDICAID 345  73,242.71
SELF PAY 40  6,974.06
TRICARE 43  11,325.95
UHC 79  33,983.00
TOTAL 730  $      166,622.90  $    43,347.93  $ 24,937.42  $    16,073.19  $      63,361.86  $         314,343.30


What are all these numbers?

  • The 0-30-day bucket for both the patient and insurance should be your highest totals. They’re the most current – we just submitted the claims and we are waiting for those claims to process to receive payment.
  • Your next highest will be the 31-60-day bucket. Typically, most of the claims due will fall in the 0-60-day period. This depends on the speed of the insurance company and how quickly they process payment. Submitting a claim to a secondary payor could also affect this bucket.
  • The money in the 61-90 bucket should drop off dramatically, especially with your insurance balances. You can see in the example given above, this office needs some work on their buckets. Some insurances show less than 7% while insurances like Aetna and Tricare are showing some red flags. These red flags can be anywhere from appeals, billing workflow problems, to reprocessing claims.
  • The 91-120-day bucket totals should drop as we work claims, bill patients, do our follow-up and pursue collection efforts, by running this report once a month, you can watch your billing staff or billing company’s progress.
  • Keep your percentage of 121 days or more to a minimum. Make it your goal to work these old claims hard. The older the claim the more difficult it is to collect on. The aim is to keep it in the single digit percentages for over 120 days.

There’s always going to be some money in each of these older buckets. But the key is to be sure the buckets in the 91 day and higher range are as low as possible. Keep working those claims, if you notice no improvement it is time to reevaluate your billing team.

KEEP IN MIND: The AR report is one essential tool but should not be the only report ran to monitor your billing. There are many other factors affecting these totals.


  • In the 0-30-day bucket, one factor that could affect the totals could be provider vacations or slow claim submission. Having a few providers out of the office would account for a lower total in this bucket. But if that number is lower and your older AR stays the same, your days over 120 as a percentage will increase. In balancing these reports, you must take that into account.
  • Uncertain technical issues with Insurance – Your practice could have issues with a certain insurance company that hasn’t paid for any given reason.  This may leave claims to take months to process due to some technical issue that hasn’t been resolved.
  • Appeals – which could take months to resolve – There could be multiple appeals, leading to a lot of insurance balances in the 120-plus bucket. You’re still constantly working those claims, but they show up as outstanding. So, your percentage and amount due may continue to increase but that may be OK.


One way some billers run the report to make the insurance AR “look better” is to run the report based on date-of-last insurance submission. Practice management systems can re-bill all or some of the old claims in bulk by setting the report parameters to last submission date instead of date of service. This, however, starts the clock over again, putting the old claims in the current 0-30-day bucket, making your AR reports look good.

Make sure your reports are NOT being done this way. Always compare your current month to your previous month to ensure there are no drastic changes in your numbers. If so, INVESTIGATE!

Calculating Days in A/R

  1. First, calculate the practice’s average daily charges:
  2. Add all charges posted for a given period (e.g., 3 months, 6 months, 12 months).
  3. Subtract all credits received from the total number of charges.
  4. Divide the total charges, less credits received, by the total number of days in the selected period (e.g., 30 days, 90 days, 120 days, etc.).
  5. Next, calculate the days in A/R by dividing the total receivables by the average daily charges.

As part of our medical billing services, RelianceMM offers a variety of customized and tailored reports for your practice. All of our reports are prepared monthly, and a copy is given to each physician owner and manager.

If you need help with your analysis, give us a call.  Have that peace of mind you deserve by knowing your medical billing is being handled by professionals who get the job done correctly.

Part 2

Utilization Report or Key Performance Indicators Report

What does this report tell me?

A utilization report tracks charges, payments and collections, and collections of your practice’s top 10 carriers, or the payers that make up most of your practice’s business. This report should display payments, collections and CPT codes, allowing your practice to drill down into charges, payments and collections for a specific CPT code. This report also provides important information that can be used to negotiate better pricing with payers and insurance companies.


This report helps save both money and time when utilized correctly. It gives practices a summary of how they are doing by tracking revenue cycle metrics. The report should show the top 10 payers that contribute to the major portion of practice payments. The report also keeps track of payments, collections, and CPT codes and units. Using this information, a practice can narrow down to the specifics regarding the collections, charges, and payments of a given CPT code. Depending on the system you use, your report would look similar to the chart below. (Keep in mind these are screen shots and the report should be a bit more extensive than what is seen below)


medical billing revenue reports


medical billing cpt codes


By utilizing these reports, a practice can highlight the carrier which is paying less than other commercial carriers allowing the practice to renegotiate better contracts. While the option a practice chooses varies according to preference, the important thing is that the report allows practices to make informed decisions. If you are not sure how to run this report in your system or how to read the report yourself, contact a Reliance representative to assist you. A simple phone call could save your practice thousands.

Resources & Credits:
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