If a clinic reports low accounts receivable and high revenue, which statement is most accurate?

• A. This indicates that claims are accurate, complete, and verified.
• B. This indicates that the clinic is underbilling patients.
• C. This indicates a high denial rate.
• D. This indicates that most claims are underpayment.

Answer: (A)

Low accounts receivable means the clinic is collecting what it bills fairly quickly, so there isn’t a large amount of money owed from payers or patients. When revenue is high at the same time, this pattern suggests that the claims being submitted are accurate, complete, and verified, allowing payers to adjudicate them promptly and payments to post without delays. In other words, clean, correctly documented claims are driving fast cash flow. The other possibilities don’t fit both signals: underbilling would typically show up as lower revenue, a high denial rate would tend to create more unpaid or disputed claims and raise the A/R, and widespread underpayment would lower net revenue rather than keep A/R low.