Difference Between Accounts Receivable and Accounts Payable in Medical Billing
Accounts receivable (A/R) refers to money owed to a healthcare provider, while accounts payable (A/P) refers to money that the provider owes to others.
Difference Between Accounts Receivable and Accounts Payable in Medical Billing Explained
In medical billing, A/R represents unpaid claims or patient balances, and A/P refers to expenses the provider must pay, such as medical supplies or employee salaries. Managing both effectively is crucial for maintaining a practice’s financial health.
For example, a billing office tracks A/R to ensure claims are paid, while A/P involves paying vendors for medical equipment.
Discover common acronyms and abbreviations in Medical billing glossary.
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