No matter what sort of business you’re running–whether it’s large or small, public or private–accounts receivable are probably something that you have to deal with on a daily basis. The only exceptions are companies that require payment for goods and services immediately, such as grocery stores or retailers. And even then, there may be a situation in which these companies agree to a large delivery or specialty order for which they may invoice the client. As soon as it’s issued but not paid, this “account receivable” becomes a liability on the company’s balance sheet.

For healthcare organizations, accounts receivable can be especially problematic. This is because nearly every transaction that occurs in a hospital, doctor’s office, or urgent care center involves an insurance company. This need to direct full billing through a third party creates a delay between the time service is rendered and the date on which the healthcare organization may or may not be paid.

Keep reading to learn more about how account receivables work in the healthcare industry as well as how receivables financing from The Commercial Finance Group can help to bridge the gap between service and payment, turning these liabilities into assets that can help grow your business.

Common Accounts Receivable In Healthcare Organizations

There are only a few opportunities for the creation of accounts receivable in health care organizations. Unfortunately, they represent the bulk of the transactions in which a healthcare provider might engage in a given fiscal period. These include:

  • Unpaid invoices from patients – With so many modern insurance plans designed with high deductibles, it’s very common for patients to be unable to remit their entire obligation immediately, even when they do have coverage. Compassionate healthcare providers may extend payment plans to these patients, which immediately become accounts receivable.
  • Unpaid invoices from insurance companies – Even when a patient is fully capable of producing their copay at the time of service, there’s still the balance of the bill to recover. Unfortunately, it must be sent as a claim to the insurance company, which evaluates many factors before it delivers payment.
  • Unpaid invoices from the government – If your healthcare organization works together with local, state, or government agencies in any way, such as providing on-site flu shots or a wellness workshop, prepare for a long wait. Government agencies are notoriously slow to pay invoices, which makes their larger contracts a double-edged sword for many companies.

AR in HO Side page content image 012317Healthcare Accounts Receivable Specialists You May Need

In order to track, manage, and collect accounts receivable in a healthcare organization, you’ll need the services of more than just a plucky receptionist. The following specialty jobs are full-time positions that are often necessary to recover accounts receivable:

  • Medical Billing Specialist
  • Medical Claims Denial Specialist
  • AR Resolution/Collections Specialist
  • Medical Patient Collections Specialist
  • Patient Access Representative

While some of these professionals are necessary if you’re required to deal with insurance companies on any level, others like the AR Resolutions/Collections Specialist can be eliminated with the help of accounts receivable financing.

Collecting Accounts Receivable Is A Task You Can’t Afford

With accounts receivable financing, you can turn your unpaid invoices into instant working capital for your health care organization. Instead of fretting as you watch the pile of unpaid invoices grow taller, these liabilities can be transformed into assets that will allow you to pay your bills and expand your operations.

Instead of having to keep a full-time collections specialist online to track down the individuals responsible for accounts receivable, you can turn that task over to the receivables financing experts at The Commercial Finance Group. We’ll purchase your accounts receivable at a slight discount, giving you much-needed cash while we take over the chore of collecting the unpaid invoices.

Contact our offices in Los Angeles for more information today!