5 Financial Red Flags That Could Sink Your Medical Practice

At ACCORDPRO, we support healthcare and non-healthcare businesses with expert billing, credentialing, and bookkeeping services. Over the years, we’ve identified key financial warning signs that often precede bigger problems.

How to Spot Trouble Early and Protect Your Bottom Line

Running a successful medical practice today means managing more than just patient care. Financial missteps—especially the ones you don’t notice right away—can quietly erode your profitability and put your practice at risk.

Here are 5 financial red flags that could signal trouble—and what you can do about them.

1. High Accounts Receivable (A/R) Days

If your average A/R days exceed 45–60, it’s a sign that payments are not being collected in a timely manner. This delays cash flow and increases the risk of never getting paid.

What to Do: Track A/R by aging buckets (0–30, 31–60, 61–90+). Focus on older balances first and review payer-specific issues. At ACCORDPRO, we implement A/R recovery workflows that reduce outstanding balances fast.

2. Inconsistent Monthly Revenue

Are your monthly collections fluctuating without explanation? Unstable revenue often signals deeper problems like poor claims management, missed billing, or authorization issues.

What to Do: Compare billing vs. collection reports monthly. Identify patterns by provider, service, or payer. Outsourced RCM teams like ACCORDPRO help stabilize your revenue cycle and reduce monthly volatility.

3. Excessive Claim Denials or Write-Offs

Denials that aren’t appealed—or are routinely written off—represent lost revenue. If denial rates are above 5–10%, something is broken in your billing workflow.

What to Do: Audit denial reasons and fix root causes. Implement a denial management team or partner with billing experts who can handle appeals and track recoveries.

4. Lack of Financial Reporting or Forecasting

If you don’t have access to real-time financial data—such as cash flow projections, overhead ratios, or payer performance—you’re flying blind.

What to Do: Use monthly dashboards that include KPIs like Days in A/R, denial rates, and net collection rate. At ACCORDPRO, we provide clear financial snapshots to help owners make informed decisions.

5. Dependence on One Payer or Referral Source

If more than 30–40% of your revenue comes from one source, your practice is vulnerable. A single contract change or provider loss could devastate your income.

What to Do: Diversify your payer mix and referral channels. Build value-based contracts or explore cash-based services to reduce reliance on third-party payers.

Final Thoughts

A profitable practice doesn’t just depend on seeing more patients—it depends on spotting risks before they snowball. These red flags are your early warning system.

ACCORDPRO helps practices get back on track with tailored billing, credentialing, and bookkeeping support that puts your finances on solid ground.

Worried about hidden financial risks? 

📞 Contact us today at 425-215-0517 or visit www.accordpros.com to schedule your free financial review.