What does the term "aged accounts receivable" mean?

Aged accounts receivable refers to amounts owed to a healthcare provider or facility that have not been paid within a specific period. This term is commonly used in accounts receivable management to assess the financial health of the organization. By categorizing receivables based on how long they have been outstanding, healthcare providers can analyze their collections and identify trends, such as payment delays or issues with specific payers.

For instance, if an account remains unpaid for 30, 60, or 90 days, it is classified as overdue, and deeper investigations may be warranted to follow up on the payment process. This practice helps providers maintain cash flow and prioritize collections efforts effectively, ensuring that they can continue to deliver services and manage operational costs.

In contrast, the other options do not accurately define aged accounts receivable. Payments made within the last month would pertain to current receivables rather than aged ones. Revenue collected from patients focuses on amounts received instead of those pending payment. Claims submitted to payers refer to the initial request for payment but do not address the aging process of accounts that are still outstanding. Thus, defining aged accounts receivable as amounts owed that remain unpaid after a specified period accurately captures its essence in revenue cycle management.