Clean up the A/R before putting the practice on the market
Thinking of selling your practice? Looking to be acquired by the hospital? Merging with another group? If you’re contemplating any of these scenarios, it’s time to clean up the accounts receivable (A/R). And even if you’re not, routinely cleaning up the A/R is a sound business practice.
1. Assess the situation.
First, generate an aged accounts receivable report that segregates patient A/R from insurance A/R. Create the workplan to initially focus on A/R > 90 days old. Review the breakdown of accounts by dollar amount. For example, a sample patient A/R > 90 days revealed the following:
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Large enough to serve a diverse clientele, yet small enough to maintain a hands-on approach, we are committed to maintaining the highest accounting and ethical standards with continuous education, extensive research resources, and excellent quality control.
Polk and Associates is a member of the Michigan Association of Certified Public Accountants, and the American Institute of Certified Public Accountants. The firm participates in the AICPA Peer Review Program, and has always received the highest level of award for its audit practice and quality control.
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