What is the function of account aging reports in billing?

The function of account aging reports in billing is primarily to track overdue accounts for prompt follow-up. These reports categorize outstanding receivables based on the length of time they have been due, which allows billing departments to identify accounts that require immediate attention. By showing how long a patient's account has been overdue—whether it's 30, 60, 90 days or more—billing staff can prioritize follow-up actions, like sending reminders or contacting patients directly. This prompt follow-up is essential for improving cash flow and ensuring that revenue is collected in a timely manner.

In contrast, analyzing service delivery timelines does not relate to overdue receivables but rather focuses on the efficiency of service delivery. Assessing patient referrals involves evaluating the flow of patients between providers, which is a different aspect of practice management. Calculating overall financial performance typically involves a broader analysis of revenue and expenses, rather than specifically focusing on the status of overdue accounts. Thus, tracking overdue accounts aligns perfectly with the primary function of account aging reports in billing.