The following is a column from Stark CEO Mick Raich:
As predicted earlier this year, we are starting to see the cars pile up on the derailed billing train. With the shut down and suspension of billing in April and May, many billing firms are struggling to work their account receivables. Many stateside billing firms shut down or laid off staff in April and May and now they are starting to see the “new normal” for billing. However, some firms did not hire everyone back. As we’ve reviewed the end-of-month books for these clients, we’ve begun to see disturbing trends.
Account receivables are starting to back up because many billing companies focused on getting claims out the door and ignored the account receivables. As this AR ages, many billing companies are noting, “perhaps it is time to clean up the AR.” (Read: write this stuff off the books to collections.)
If you hear these words or see this happening, it would be prudent to pay attention. These are collectible dollars being written off to a collection agency, which means lost revenue for you.
Ask to see these accounts and review the work done for them. Perform a pre-collection audit and review both the billed claim and the screen notes to see what was actually done on this account before it was written off. In many cases, we find these accounts were billed then ignored and simply timed out in the billing system before being automatically written off. Not good. In a time when every penny counts, now is the time to be prudent in your cash flow. Who’s watching your wallet?