It is incredibly important to have your Office Manager run reports for you each and every month and that you actually look at them and take action.

One of the most important reports is the Aging Report.  This is the report of all that is currently owed to you listed by current, 30, 60, and over 90 days.  The benchmark on this I have always used is that it should not be greater than one month’s average production for your office.  The over 90 day balance should be very small.  The older the balance gets, the less chance that you will collect it. 

You should run a separate report of your Credit Balances.  The only credit balances that you should be carrying should be those where a patient paid in advance for treatment.  As soon as a patient has a credit balance because the insurance paid more than expected, the extra money collected should be refunded to the patient.  This is not your money and should not be kept in your business.  If the credit balances are high, that will artificially lower the Account Receivable number and not show you that your A/R is too high. 

You need to make your Office Manager accountable for these numbers.  This is your profit and your deserve to be paid for your hard work!  Statements need to be sent, but only two.  Collection calls need to be made.  In some cases, delinquent accounts need to be sent to a Collection Agency.