Zeroing in on write-offs

Although collection activities had been successful at the Diagnostic Clinic of Houston, the medical group felt the need to maximize the efficiency of the collections department by focusing on the procedures involved in writing off accounts. Once the group had identified problem areas in this procedure, it engaged in an evaluation process that involved establishing goals, appraising the system, and analyzing the elements of the procedure. A recommendation was made to and accepted by the group's board of directors concerning alleviating problem areas. The result was a most favorable cash position and the ability to accurately measure collection effectiveness.