Create a system to go after outstanding balances

Set up a timetable for handling account balances as they reach certain ages. For example, at 35 days, send a letter that asks patients to pay the remainder of the balance within 10 days. At 45 days, call the patients as a reminder of the debt and to offer a payment plan. At 55 days, take more extreme measures (e.g., involving a collection agency).

Once you determine which aged balances to tackle, you must go about obtaining them in the appropriate manner. This could mean taking steps internally (e.g., making collections calls, sending letters, or offering discounts) or externally (e.g., enlisting a collection agency or collecting through bankruptcy court or the deceased patient's estate). The appropriate method will vary from practice to 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.