Aging Medical Account Receivables
Aging medical account receivables
One of the biggest problems facing medical providers is the constant battle to collect accounts receivable as they age. Experience quickly teaches those involved in the collection of medical bills that with every day that passes on an account that is not collected, it becomes statistically more difficult to collect, and the chances for default grow greater and greater. As a result, the general rule is to collect on accounts receivable in the fastest time frame possible, so as to reduce the exposure to the risks involved with the process, and to maximize the potential for collection in full. Expensive procedures and treatments that are not paid for up front or out of pocket have many pitfalls involved that can significantly harm the ability to operate smoothly on a month to month basis. The medical provider is asked to bear all responsibility for the supplies, staff, equipment, lab work and ancillary costs associated with patients, with the promise of being paid in the future for the work that was performed and the costs that go along with that work. Too many times that promise is broken due to loss of a court case, a bankruptcy or inability to pay, or some other reason. The medical provider is forced to absorb the loss, and somehow figure out how to generate enough free cash to continue to provide procedures and treatments to other patients in the future. Although it is unfair, it is all part of the medical accounts receivable collections process.
Devising methods of collecting on medical accounts receivable within faster time frames in order to minimize the risk and maximize profits has long been the job of the collections departments, who are many times staff who have been given the additional task of collecting. Methods of speeding up payments are generally unsuccessful as there is no way to force a court case to be settled quicker, other than providing the information that is your responsibility in a timely manner. The accounts receivable departments does not have the ability to determine a favorable settlement, nor does it have the ability to effectively speed up the process. Because of these reasons, many medical facilities are discovering an alternative model of medical accounts receivable collections, one that involves third parties like Med Care Solutions. Within these types of models, medical providers do not need to continue ongoing collections on approved accounts because they are paid for and assumed by the third party. The removal of accounts receivable risk has proven to be a valuable asset in the ongoing operations and growth of thousands of medical clinics, physician offices, surgery centers and hospitals nationwide. Staff can be refocused on more important tasks, worries about payments of expenses are eliminated, and medical providers can once again concentrate on providing treatments, as opposed to money.
Med Care Solutions is an industry leader in medical financing, and is the go-to for many facilities just like yours, ones who are interested in guaranteeing the maximum collections percentages. They can be contacted through their website for details on these opportunities.