Home health care agencies are confronted with an enormous challenge with balancing their revenues and expenses, trying to minimize the days outstanding on their receivables, all the while attempting to remain competitive.

The longer revenue is outstanding, the less likely it is to be collected. The need for positive cash flow is more important than ever with narrow profit margins. Implementing changes today to improve A/R processes can help organizations increase their positive cash flow and prepare for future payment changes.

Some home health agency billing operations may not have the staffing levels necessary to perform the required follow-up on outstanding accounts at all times. In these instances, it may be cost-effective to contract with an outside accounts receivable management or recovery company. With the accounts receivable management company focusing on collections and increasing cash flow, the home health agency's time can be focused on internal operations and performance improvement.