When engaging a collection agency or an attorney, first be certain that the accounts in question have been worked multiple times and are well over 180 days past due.
Q: In recent months, collecting payment for bills, co-pays, and non-covered services has become increasingly difficult. Should I look to a collection agency or an attorney to help recover the money?
Before things deteriorate to that point, though, work with your patients to create a financial plan that works for both of you. Just be sure to account for how that plan will affect your accounts receivable balance. As a general rule, you should never have more than two months of revenues in your accounts receivable total.
Send your practice management questions to firstname.lastname@example.org (please include your regular postal address). Answers to our readers' questions were provided by Michael D. Brown, CHBC, president of Health Care Economics LLC in Indianapolis.