It's no secret that delinquent accounts can harm your business. But did you know that they can also have a negative impact on your medical practice?
When patients don't pay their bills, it can create a number of problems for your practice. In this article, we will discuss some of the ways delinquent accounts can hurt your practice. We'll also provide tips for avoiding these problems.
Delinquent Accounts Can Reduce Cash Flow
One of the most obvious ways delinquent accounts can hurt your practice is by reducing your cash flow. When patients don't pay their bills, you have less money to work with. This can make it difficult to pay your own bills and meet other financial obligations.
Delinquent Accounts Can Damage Your Credit Rating
Another way delinquent accounts can damage your practice is by harming your credit rating. If you have a lot of delinquent accounts, it will be harder to get loans or lines of credit in the future. This can make it difficult to grow your practice or take care of unexpected expenses.
Delinquent Accounts Can Lead to Collection Activities
If you don't collect on delinquent accounts, you may eventually have to turn them over to a collection agency. This can damage your relationship with the patient and cost you money in fees. Additionally, it can be difficult to get patients to pay their bills if they know you've already turned them over to a collection agency.
Delinquent Accounts Can Create Financial Stress
Finally, delinquent accounts can create financial stress for you and your staff. If you're constantly worrying about money, it can be hard to focus on providing quality care. This can lead to burnout and turnover, which can further damage your practice.
Contact The Billing Department Today
If you're struggling to collect on delinquent accounts, we can help. The Billing Department is a full-service medical billing company. We can handle all of your billing needs, so you can focus on providing quality care. Contact us today to learn more about our services.