Collecting physician A/R after a departure

Written by Reed Tinsley | February 6, 2008

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 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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