The demand for mental health care has never been higher. Patients are seeking help at record levels, yet many practices are walking a financial tightrope. Rising costs, complex payer rules, and shrinking margins put enormous pressure on providers already stretched thin. In this environment, financial health isn’t just about keeping the lights on—it’s about ensuring patients can continue to access the care they need.
One of the most powerful—but often overlooked—tools is Accounts Receivable (AR) Follow-Up. Done consistently, it can be the difference between struggling practice and a thriving one. Strong AR follow-up improves cash flow, reduces write-offs, and fuels long-term growth.
Why AR Follow-Up Matters in Behavioral Health
Behavioral health practices face unique challenges. Reimbursement per session is often low, and small delays can snowball into major cash flow issues. Documentation and payer-specific rules leave plenty of room for claims to be denied, while small billing teams may not have the bandwidth to chase every unpaid claim.
Take a small group practice with three therapists and one part-time biller. Claims denied for missing authorizations piled up, progress notes weren’t submitted on time, and patients were confused by their bills. Over time, unpaid claims aged, denials were written off, and cash flow dried up, delaying payroll and preventing investments in new services.
After implementing structured AR follow-up, this same practice reduced its average days in AR from 72 to 43, freeing more than $180,000 in annual cash flow. That single improvement allowed them to hire another clinician, expand services, and ease staff burnout. AR follow-up isn’t just a back-office task, it’s a practice lifeline.
Proven Strategies for Stronger AR Follow-Up
AR performance isn’t luck—it’s strategy. Practices can strengthen financial health by creating clear protocols, leveraging technology, and aligning teams. Key strategies include:
- Prioritize claims by age and value: Address high-value or older claims first instead of waiting until they age beyond 90 days.
- Create structured follow-up schedules: Regular check-ins (every 10–15 days) ensure nothing slips through the cracks.
- Invest in denial management: Understand why claims are denied, build appeal templates, and train staff on payer-specific rules.
- Foster cross-team collaboration: Billing, clinical, and administrative teams should work together to ensure documentation supports revenue.
- Leverage technology: Automated platforms flag aging claims, track trends, and send reminders without manual effort.
- Train for behavioral health nuances: Make sure billers understand therapy-specific CPT codes, telehealth modifiers, and payer quirks.
These steps transform AR follow-up from a reactive, tedious task into a proactive, revenue-driving process.
Metrics That Reveal the Truth
Following up on claims is just the first step—measuring performance consistently is what drives improvement. Key performance indicators (KPIs) help practices see where revenue is working—and where it’s leaking:
- Days in AR: Shows how efficiently your practice converts claims into cash. Long delays highlight bottlenecks.
- AR Aging by Payer: Identifies which payers slow down payment, allowing teams to tailor follow-up strategies.
- Denial Rate and Resolution Time: Reveals process gaps and training needs. High denial rates may signal coding or documentation issues.
- Collection Rate: Measures the overall effectiveness of your revenue cycle. Declines point to process inefficiencies or insufficient follow-up.
- First-Pass Claim Rate: Shows how many claims are paid correctly on the first submission, saving time and reducing frustration.
Together, these metrics tell a story: where processes break down, which payers need extra attention, and where investments in staff or automation will yield the greatest return.
Building a Culture of AR Excellence
Metrics alone won’t improve outcomes. The most successful practices embed AR follow-up into daily culture. Assign ownership for each claim or denial, audit workflows regularly, and encourage open communication so clinicians understand how documentation impacts revenue.
Leadership should foster continuous improvement: invite staff feedback, provide training opportunities, and celebrate small wins. When AR follow-up becomes part of a practice’s DNA, financial resilience grows naturally. Teams work smarter, claims are resolved faster, and patient care isn’t compromised.
How HealthRecon Connect Helps
At HealthRecon Connect, we don’t just provide tools—we partner with practices to turn AR follow-up into a strategic advantage. We help practices:
- Audit workflows and identify bottlenecks
- Refine documentation to meet payer requirements
- Implement automation to track aging claims and send reminders
- Train billing teams on behavioral health-specific coding and compliance
- Provide real-time dashboards to monitor AR performance and inform leadership decisions
This combination of strategy, technology, and training transforms AR follow-up from a reactive task into a revenue engine.
Final Word
Accounts Receivable follow-up is far more than a back-office duty—it is the lifeline that keeps behavioral health practices financially healthy and able to serve their communities. When done strategically, AR follow-up stabilizes cash flow, reduces denials and write-offs, and frees staff to focus on patient care. By embedding accountability, process discipline, and proactive monitoring into the culture of practice, AR follow-up becomes a driver of growth rather than a reactive task.
Strong AR practices not only protect revenue, they enable providers to expand services, reduce staff burnout, and ensure patients continue to access the care they depend on.