• Our client experienced difficulties in billing and collecting its accounts receivable, and as a result was in a severe liquidity crisis and in arrears on its payroll taxes.
• Fort Dearborn Partners (FDP) was engaged to review and analyze the Company's policies and procedures over its billing and collections cycle and to improve working capital.
• FDP worked with Management and identified and recommended changes to the following:
– Increased certain patient billings to match insurance requirements.
– Improved collection response time by changing accounts receivable aging from bill date to treatment date.
– Developed cash collection trends and rates by insurance carrier to identify unprofitable relationships.
– Improved past due collections by utilizing outside collection agencies.
– Developed procedures to verify patient insurance coverage and collect required billing information.