Solving the Puzzle of Legacy Accounts Receivable
                     
Solving the Puzzle of Legacy Accounts 
Receivable
Managing legacy accounts receivable can be a challenge for hospitals. These outstanding balances can be 
difficult to collect and may have been on the books for years. They can negatively impact a hospital’s cash 
flow, financial performance, and overall stability. However, with effective management strategies and best 
practices, hospitals can tackle the puzzle of legacy accounts receivable and boost their revenue.
The Hidden Costs of Unpaid Medical Bills
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Solving the Puzzle of Legacy Accounts 
Receivable
The financial burden of unpaid medical bills is a significant issue for hospitals. When patients do not pay their 
outstanding balances, hospitals are left with uncompensated care costs that can impact their bottom line. 
Uncompensated care costs include both bad debt, which is when a hospital cannot collect payment from a 
patient or insurance company, and charity care, which is when a hospital provides care for free or at a 
reduced cost to patients who are unable to pay.
In addition to the direct financial impact of uncompensated care costs, there are also hidden costs associated 
with unpaid medical bills. These can include increased administrative costs associated with collections efforts, 
such as phone calls, letters, and legal action, as well as the impact on patient satisfaction and the hospital’s 
reputation. When patients receive bills that they cannot afford to pay, they may become frustrated or feel 
that the hospital is not providing them with the care they need. This can lead to negative reviews or word-of-
mouth recommendations, which can harm the hospital’s reputation and future business.
Managing Hospitals’ Legacy Accounts Receivable
Managing legacy accounts receivable requires a comprehensive approach that includes analyzing the 
problem, identifying root causes, and implementing effective solutions. Hospitals can start by reviewing their 
accounts receivable aging reports to identify outstanding balances and prioritize collection efforts. They can 
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Solving the Puzzle of Legacy Accounts 
Receivable
also conduct a detailed analysis of their billing and collection processes to identify gaps, bottlenecks, and 
areas for improvement. This analysis may include reviewing claims denials, rejections, and underpayments, as 
well as evaluating patient registration, insurance verification, and billing practices.
Other best practices for managing legacy accounts receivable may include leveraging technology solutions, 
such as revenue cycle management software, to streamline billing and collections processes. Hospitals may 
also consider outsourcing collections to a third-party vendor, which can help reduce costs and improve 
collections rates. Additionally, establishing payment plans and negotiating settlements with patients and 
insurance companies can help hospitals recover funds and reduce bad debt write-offs.
A Roadmap for Hospital Financial Success
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Solving the Puzzle of Legacy Accounts 
Receivable
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Effective legacy accounts receivable management requires a clear understanding of the challenges involved. 
Hospitals must navigate a complex web of regulations, insurance requirements, and patient expectations. To 
succeed, hospitals must develop a roadmap that includes clear goals, timelines, and performance metrics. 
One challenge that hospitals may face when managing legacy accounts receivable is identifying and 
communicating with patients who have moved or changed their contact information. Hospitals can overcome 
this challenge by implementing patient identification and verification processes that include multiple points 
of contact, such as email, phone, and social media.
Another challenge is managing the administrative burden associated with billing and collections processes. 
Hospitals can overcome this challenge by streamlining their processes and leveraging technology solutions 
that automate routine tasks, such as patient registration, insurance verification, and claims processing. By 
reducing administrative burden, hospitals can improve efficiency and reduce costs associated with legacy 
accounts receivable.
Legacy Accounts Receivable Management
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Solving the Puzzle of Legacy Accounts 
Receivable
Effective legacy accounts receivable management is a critical component of hospital financial success. By 
implementing best practices and leveraging technology solutions, hospitals can reduce financial risk and 
improve their overall performance. One way to reduce financial risk is to identify and address revenue 
leakage. Hospitals can do this by reviewing their charge capture processes, coding practices, and claims 
submissions to ensure that they are capturing all revenue owed. Hospitals may also need to conduct audits of 
their billing and coding practices to identify potential areas of noncompliance or under-coding.
 
Another way to improve hospital performance is to optimize collections processes. This may include 
implementing payment plans and negotiating settlements with patients and insurance companies. Hospitals 
can also leverage predictive analytics to identify patients who are most likely to pay their outstanding 
balances, and develop targeted communication and payment strategies to improve collections rates.
Outsourcing Legacy Accounts Receivable Services Can Benefit Hospitals
Outsourcing legacy accounts receivable services can be a smart strategy for hospitals looking to streamline 
their collections processes and protect their revenue. Third-party vendors can provide a range of services, 
from billing and collections to patient communication and education. By outsourcing these services, hospitals 
can reduce their administrative burden and improve their collections rates.
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Solving the Puzzle of Legacy Accounts 
Receivable
One key benefit of outsourcing legacy accounts receivable services is access to specialized expertise. Third-
party vendors have deep knowledge and experience in billing and collections, and can provide hospitals with 
insights and best practices for improving their financial performance. Additionally, outsourcing can provide 
hospitals with cost savings, as third-party vendors often have economies of scale that enable them to provide 
services at a lower cost than hospitals could achieve on their own.
Medical Billers and Coders (MBC): Legacy Accounts Receivable Service Provider
Medical Billers and Coders (MBC) is a reputable provider of legacy accounts receivable services for hospitals. 
MBC’s team is well-versed in the complexities of hospital billing and collections, and can provide tailored 
solutions to help hospitals overcome their legacy accounts receivable challenges. By outsourcing legacy 
accounts receivable services to MBC, hospitals can benefit from the company’s deep expertise and 
experience, and can reduce administrative burden while improving financial performance.
Overall, MBC is a valuable partner for hospitals looking to streamline their collections processes and protect 
their revenue. To know more about our hospital billing including legacy accounts receivable services, email us 
at: [email protected] or call us at: 888-357-3226.
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