Read your aging report
Split A/R into insurance and patient balances, then by age: current, 31–60, 61–90 and over 90 days. Balances over 90 days are much harder to collect.
Collect earlier
- Estimate patient portions and collect at checkout
- Use card-on-file for post-insurance balances, with consent
- Send statements promptly, by text or email where patients opt in
- Follow a set reminder schedule and escalation path
- Offer short payment plans for larger balances
What slow collections cost
Every dollar in A/R is cash you've earned but can't use. At a 9% borrowing cost, $180,000 of A/R costs about $16,000 a year to carry — before any write-offs.
Run the numbers
Patient or customer charges billed per month.
E.g. your line-of-credit rate.
Days to collect today
46 days
Cash freed at 30 days
$61,644
Yearly carrying cost
$16,200
Expected uncollectible
$9,000
Days outstanding = A/R ÷ average daily charges. A simplified view — insurance timing, payment plans and write-off policy all affect real collections.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a payments specialistCommon questions
What's a good days-to-collect number?
It depends on payer mix. Track your own trend monthly and compare patient-only A/R separately from insurance.
Should we send old balances to collections?
Set a written policy and apply it consistently. Collection agencies take a share and can affect patient relationships.