#198 $300,000 in Old AR Is at Risk During Your Next Billing Transition

Send us Fan MailThere is a revenue cliff hiding inside the billing transition most independent practices are planning right now. Not from the change itself. From the order of it. In this episode we walk through why the money in your bank account during month one of a new billing arrangement is almost entirely old AR, why simultaneous service and software change is the fastest way to lose that money, and the three questions you have to answer before any sequencing decision makes sense. Three questions before you sequence anything: Are you replacing an in-house team or an outsourced vendor? Who owns the software? Is the software working, or is it part of the problem? Skipping these is where the error gets made. System 1: The revenue ramp. Month one is 80 to 90 percent old AR. Month four is 95 to 100 percent new team. Every sequencing decision has to protect that ramp. System 2: In-house vs outsourced risk profiles. In-house transitions risk institutional knowledge walking out. Outsourced-to-outsourced transitions risk data access and credentialing. Different risks, different sequences. System 3: Three software paths. Keep functional software and transition service only. Replace failing software after service stabilizes. Or defer the outdated-but-functional software conversation until months four through six. Three actions this week Answer the three questions in writing before any vendor conversation. Pull your AR aging report. If more than one month of gross charges sits past 45 days, plan an AR cleanup sprint before the new team starts. Read your current vendor or software contract for data provisions, notice terms, and auto-renewal windows. Episode breakdown 00:00  Hook and big idea 02:30  The three questions 13:00  System 1: the revenue ramp 16:00  System 2: in-house vs outsourced 20:00  System 3: three software paths 24:00  Summary and action plan 26:00  CTA and cliffhanger Resources EMR / PM Software Assessment Form (primary): https://eligibility.natrevmd.com/emp/pm-evaluation-frameworkBook a Revenue Audit: natrevmd.com/schedule-a-call Payment Posting Audit Checklist: eligibility.natrevmd.com/payment-posting-checklist Practice Revenue Leak Scorecard: eligibility.natrevmd.com/nrm-revenue-scorecard-v3 30-Day Revenue Recovery Plan: eligibility.natrevmd.com/nrc/-30day-revenue-recovery-plan