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Oct 29, 2014 More on Billing and Collections Collecting money owed has become harder than ever. What worked for a provider four or five years ago may not be effective today Cash flow is one of the best indicators of the overall health of a medical practice. If your accounts receivable are sitting at a reasonable number, you're probably doing a solid job of running your business. At the same time, however, collecting money owed has become harder than ever. What worked for a provider four or five years ago may not be effective today. Across all businesses, one in three Americans has an account Paid Skiptracing tools in active collections. Adding to the pressure, in the past two months, FICO de-emphasized medical debt on credit scores — which means money owed to doctors and hospitals does not influence credit ratings as much as it used to. Overall, last year's recovery rate for medical practices using collection agencies was 14.6 percent. Put another way, practices can expect to net about $95 for every $1,000 assigned out for collection. “You've got to be prepared to compete for collectable money,” explained Wally Schmader, vice president of collections firm Transworld Systems. “You have to be very active on slow-paying patient accounts.

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