The Challenge: A $6 Million AR That No Vendor Would Touch
The facility’s long-time PMS vendor suddenly went bankrupt, leaving them stranded with over $6 million AR pending in the old system. While the practice arranged a contract with a new vendor using an upgraded version of the same PMS with a notice of 3 months transition period. The real problem came when the new vendor refused to take responsibility for the existing AR, citing compatibility issues and liability concerns. The entire backlogs, years of claims and unpaid balances was left behind in an unsupported, outdated system. they refused to take responsibility for the old AR, calling it “unworkable” and advising them to write it off.
For a high-volume specialty practice generating thousands of claims each month, the consequences were serious, delayed reimbursements, interrupted cash flow, and a growing administrative burden. The practice was facing the risk of significant revenue loss unless someone could find a way to retrieve and process the old data quickly.