Current Accounts Receivable Loading Bar Chalk

The management of accounts receivable (A/R) is a critical aspect of running any healthcare organization. It is challenging enough to keep up on collection lag times from patients and a wide variety of payers, but add to that a revenue cycle management software upgrade or replacement and the challenge becomes even more difficult.

One of the first questions a financial system replacement should prompt is how to manage legacy A/R. Addressing this question prior to the implementation of the new RCM system will ensure that the collections transition runs more smoothly. Begin by identifying which accounts are the most beneficial to keep active versus which should be written off, and then put a strategy together on winding the active accounts down.

A/R Wind Down Strategy

Although keeping the legacy financial system up and running for collectors to work the A/R down is an option, this solution often comes with costly vendor support contracts and requires maintenance resources from IT. As it ages, that legacy system can also open the organization up to vulnerabilities and increased cybersecurity risks – not to mention a potentially complicated workflow. Few collections teams want to navigate a swivel-chair strategy, working two concurrent systems at once to wind down A/R.

So, what’s the alternative?

You can decommission the legacy system and build your legacy data management strategy around an archiving solution that allows staff to continue collection efforts with complete billing functionality.

This A/R wind down approach:

  • Reduces costs of legacy system support and maintenance
  • Fortifies defenses against cybersecurity threats
  • Ensures HIPAA-compliant record retention and compliance
  • Helps maintain continuous account resolution during the system transition

If your organization is going through a financial system replacement and there are outstanding accounts receivable records you’re not sure how to handle, let’s talk.

Oct 24 2019

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