Medical Practice Management
Feb 06

Collecting physician A/R after a departure

The following was a recent listserv question:

Once a physician leaves a practice, what is a fair % to charge for collecting the AR this physician leaves behind? Right now she pays half of the billing employee’s salary, but that would not be fair since all the staff will be doing for her is collecting the AR. Any ideas? Thanks.

The overwhelming percentage I see used is 10%. However, make sure this issue is addressed within the physician’s employment agreement or within the shareholder/partner buy out agreement. The issue of what % to charge is often left out of contracts and should not be left to a “discussion” when a physician actually leaves the practice.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →