A large business, in any field, is likely to have an accounts receivable department. Accounts receivable services are similar to this department, but they often act as an independent contractor, or another hired service, rather than as employees of the business. In the medical industry, it can be especially helpful to use an accounts receivable service to handle the large amounts of invoices and bills the average hospital and clinic works with on a daily basis.

Keeps Invoices and Bills Organized

Like an accounts receivable department, the service will help to keep track of invoices and bills, as well as keep them organized. By taking care of these invoices and bills in a timely manner, a hospital or clinic can have a more accurate idea of what its working capital is. The more accurate the business’s working capital information is, the better a business will know which large purchases and bills it is able to pay off.

Sells Accounts to Financing Firms

One thing that service can do that a department might not be able to do is sell accounts receivables. With hospital and clinic bills being so large, it is not likely that a patient will be able to pay off their entire bill at once. However, a financing firm can, or at least pay it off in fewer (and larger) payments. 

By selling off the account, the hospital or clinic no longer needs to worry about collecting payments from the patient, as the account has already been paid off by the financing firm. Instead, it is the firm that collects future payments from the patient. This also helps to keep a higher working capital amount within the medical industry business.

Works With Insurance Companies

A good insurance company will pay the bulk of a patient’s bill. However, it can sometimes be difficult to get in contact with the insurance company and get a payment from them. Accounts receivable service will take care of this so the medical business’s accountants don’t need to. This is just one of the many ways in which a service is used to keep the cash flow in a medical business running much more smoothly.

Any large hospital or clinic with many patients can benefit from using an accounts receivables service. These services help to speed up the time in which it takes an account to be paid off, whether that be by selling the accounts or getting in contact with insurance companies faster.