4 Questions for Medical Healthcare Providers to Ask About Receivables Collection
If nothing else, every healthcare provider should ask the following questions when approached by financial firms interested in receivables —
- Tell me about your worker’s comp A/R experience.
- How is your company organized — are you a fund or do you re-invest capital?
- Beyond providing capital, are you qualified to provide operational expertise?
- How might an asset purchase agreement impact our practice’s marketing and growth plans?
- Tell me about your service level agreements; who will I be talking to when I have questions?
If a firm is reluctant or unable to answer these questions, with direct honesty, then reconsider proceeding.
Of your own practice, before considering any displacement of assets such as receivables, we recommend you answer the following:
1. How do you bill in relation to fee schedules?
2. How strong are your primary referral sources’ operations?
3. How well do you know your receivables inventory?
4. What impact will the ICD-10 transition have on your A/R, specific to each financial class?
If you are unable to answer these questions, reconsider doing anything with your receivables. And of course, never hesitate to contact us if you need help navigating the A/R waters. We have nothing to hide.