Collecting in challenging times

Written by Reed Tinsley, CPA | April 8, 2009

 

It's obvious that with the economy, accounts receivable management is more challenging. The Credit Research Foundation reports among 583 companies an increase in average days delinquent of 13.7% in the 3rd quarter of 2008. Accounts delinquent after 91 days have increased 17.7%.

For medical practices, the following have been the percentage ranges for outstanding accounts:

                               1 - 30 days old    Over 90 days

FP                           67 - 71%             23 - 27%

Pediatrics                  68 - 72%             14 - 18%

Orthopedic Surgery     53 - 57%             18 - 22%

Cardiology                 61 - 65%             23 - 27%

(Source:Practice Management STATS Quick Reference)

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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