What is unapplied cash?
Unapplied cash is money received but not yet posted to a specific claim or patient, because the remittance is missing or the payment can't be matched. It keeps the deposit balanced while it's researched.
Unapplied cash
| Received | Source | Amount | Status |
|---|---|---|---|
| 01/22 | EFT, no 835 received | $1,946.00 | 835 requested from payer, 2 calls |
| 02/14 | Patient check, no account number | $75.00 | Matched by name, needs confirmation |
| 03/18 | EFT, 835 references unknown claims | $412.50 | Researching |
- Every item has an age and an owner. Unapplied cash that nobody owns becomes a month-end surprise.
Sometimes money arrives that can’t be tied to a claim: an EFT whose 835 never came, a check without an account number, a remittance for claims the provider can’t find. Posting it to unapplied keeps the books in balance while someone finds where it belongs.
Why it should stay small
Unapplied cash isn’t revenue yet, it inflates or hides A/R, and some of it may be owed back. Large or old unapplied balances usually mean missing 835s, bad matching or payments for another provider. Each item needs an owner, research and a deadline, and the total should be reviewed at every month-end close.
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