In a medical office, it is discovered that several patient accounts have not been paid within the required 90-day period. The office manager decides to review the accounts receivable aging report. What is the primary reason for analyzing this report?
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To verify the correct insurance billing codes used for the past year
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To reconcile daily patient appointments with revenue
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To determine the amount of credit to extend to new patients
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To identify outstanding patient balances that are overdue for payment
The primary reason for analyzing an accounts receivable aging report is to identify outstanding patient balances that are overdue for payment. This allows the medical office to take appropriate actions to secure payment, such as sending reminders or employing collection strategies. The process helps maintain the financial stability of the practice by ensuring that services rendered are paid for in a timely manner.
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