4 steps to clean up outstanding A/R before 2012 with collectors or write-offs

Why This Topic Matters

End-of-year A/R cleanup affects cash flow, collection efficiency, and the accuracy of annual financial reporting. It is relevant to practices planning how to handle overdue balances before closing the books.

Article Sections

1. Revenue cycle management

   Introduces the article’s focus on managing aged patient balances at year-end and the financial reasons practices review outstanding receivables.

2. Follow these steps to figure out which patients to send to collections and which balances to write off.

   Presents the overall workflow for sorting outstanding balances into collection, discount resolution, and write-off categories.

3. Isolate your aged A/R and apply a filter by dollar amount.

   Discusses reviewing older receivables and setting general screening thresholds for very small balances.

4. Send out a “10-day” letter after you have a list of balances with aged A/R.

   Covers a reminder-letter step used after identifying overdue balances and before escalating accounts further.

5. Offer discounts before sending to collections.

   Describes a final opportunity to resolve accounts through discounted payment arrangements before escalation.

6. Send patients to collections, but don’t expect much back.

   Addresses the collections stage and general expectations for recovery performance and market trends.

7. The final write-offs:

   Summarizes the last step for balances that remain uncollectable after prior recovery efforts.