Few challenges frustrate healthcare practices more than aging accounts receivable (A/R). As balances age, the likelihood of collection drops sharply. However, rushing to recover payments without a compliance-first mindset creates bigger risks—patient dissatisfaction, reputational damage, or regulatory violations. The solution is a balanced strategy: reducing A/R while maintaining compliance and professionalism.
Prioritizing Accounts Effectively
Not every overdue account should be treated equally. Practices should segment accounts by age, balance, and payer. For example, a $2,000 account at 30 days past due may deserve more immediate attention than a $50 balance at 90 days. Technology tools can help by flagging high-priority accounts and automating workflows for staff. Prioritization ensures resources are spent wisely.
Automating Follow-Up Without Losing the Human Touch
Automation streamlines follow-up with payers and patients, sending reminders before accounts age further. But automation should never replace empathy. Scripts and templates should be written with compliance in mind, ensuring they meet federal collection standards and respect patient relationships. Patients are more likely to respond positively when communication is clear, professional, and respectful.
Compliance Considerations
Collections must comply with state and federal regulations, such as the Fair Debt Collection Practices Act (FDCPA). Practices should train staff on what can—and cannot— be said when discussing overdue balances. Documentation of all collection efforts is also essential. Without compliance safeguards, a practice could face legal issues or damage its reputation.
Continuous Monitoring and Improvement
Regular audits of A/R processes help identify gaps. Are staff following protocols? Are letters and phone scripts consistent with compliance standards? Monitoring also provides insight into payer delays. For example, repeated denials for the same reason may indicate a systemic issue with eligibility checks or coding accuracy. Why Compliance Protects RevenueNoncompliance not only risks penalties but also hurts revenue long-term. Patients who feel mistreated are less likely to return or refer others. By keeping compliance at the heart of A/R strategies, practices protect both their immediate collections and their long-term financial health.
Conclusion
Aging A/R doesn’t have to drain your practice. By prioritizing accounts, leveraging automation, and reinforcing compliance, practices can reduce outstanding balances while safeguarding trust. At MedCycle Solutions, we help clients implement strategies that collect smarter—not harsher.