Many organizations today are running bad debt expenses in the 3 to 5 percent range, resulting in millions in lost revenue. For some organizations, the financial struggle is real. With the countless changes that our industry is facing, it is becoming more and more difficult to collect the accounts receivable (AR). Looking at industry averages, if the percentage of bad debt is less than 2 percent, you’re doing fairly well. If the percentage is above 2 percent, Comprehensive Healthcare Solutions, LeadingAge NY’s new partner sponsor, recommends that you take a look at what the underlying causes of bad debt are in your organization. There are ways to improve your collections where bad debt expenses can be reduced to 1 percent or less.
Article for Leading Age NY on Reducing Bad Debt
