One of the biggest problems facing medical providers is the constant battle to collect aging accounts receivable. Experience quickly teaches that with every day that passes on an account that is not collected, it is statistically more challenging to collect. The chances for default grow greater and greater. As a result, priority is put on collecting on accounts receivable as soon as possible to reduce risks involved, and to maximize the potential for full payment.
An unfair accounts receivable collections process
Expensive procedures and treatments that are not paid for upfront or out of pocket have many pitfalls involved that can hinder the ability to operate smoothly month to month. Thus, the provider bears all responsibility for the supplies, staff, equipment, lab work, and ancillary costs associated with patients. But the promise of full payment is broken far too many times because of lost court cases, bankruptcy, inability to pay, etc. The medical provider is then forced to absorb the loss, and somehow figure out how to generate enough free cash to continue to provide procedures and treatments to other patients. Although unfair, it is all part of the medical accounts receivable collections process.
Better methods are assets to physicians
Devising quicker methods for collecting on medical accounts receivable has long been the job of the collections departments, which can often be staff who have the additional task of collecting. Speeding up payment methods are generally unsuccessful as there is no way to force a court case to be settled quicker, other than providing the information required promptly.
The accounts receivable departments cannot determine a favorable settlement, nor does it have the ability to speed up the process. This is why many medical facilities are discovering an alternative model of medical accounts receivable collections, one that involves medical finance companies like PROVE Partners. With medical funding, providers do not need to continue ongoing collections on authorized accounts. The finance company pays and assumes those accounts. Selling accounts receivable risk has proven to be a valuable asset in ongoing operations and growth of thousands of medical clinics, physician offices, surgery centers, and hospitals nationwide. Staff can finally refocus on more critical tasks, worries about payments of aging accounts are eliminated, and medical providers can once again concentrate on providing treatments.
PROVE is an industry leader in medical lien financing, also known as medical lien funding, and is the go-to for many facilities that are interested in guaranteeing maximum accounts receivable percentages.