Episode 43 — Recovering Your AR with Jeff Dorsey
In this insightful episode of The Prospecting Show, Dr Connor Robertson sits down with Jeff Dorsey, a healthcare revenue cycle expert who has helped countless medical practices identify and recover lost income hidden in their accounts receivable (AR). Together, they break down why so many practices leave money uncollected and how the right systems, mindset, and tools can restore profitability without adding more patients or services.
This episode builds on the innovation themes from How to Create Great Healthcare Products with Dr Emily Splichal, shifting from product creation to financial execution. The focus here: operational excellence as the backbone of sustainable healthcare growth.
Understanding the AR Problem
Jeff starts by explaining a fundamental issue: most healthcare businesses don’t fully realize how much money they’re leaving on the table. “Accounts receivable isn’t just a line on your balance sheet; it’s your patients’ payments that never made it into your bank account,” he says. “When practices don’t track AR properly, it’s like running a race while dragging a parachute.”
Dr Robertson agrees, adding that this problem plagues even high-volume clinics. “You can see hundreds of patients a week and still struggle to make payroll if your cash flow isn’t steady,” he notes.
Jeff emphasizes that AR issues often stem from broken communication chains between front desk staff, billing companies, and insurance providers. “The system fails when each party assumes someone else will follow up,” he says. “AR recovery begins with accountability.”
The True Cost of Ignoring AR
Dr Robertson asks Jeff to quantify the impact. Jeff explains that some practices carry over 20% of revenue in outstanding AR, much of which is never collected. “If you bill $1 million a year, that’s potentially $200,000 just sitting in limbo,” he warns.
He also points out the compounding cost of inefficiency. “Every month that passes, recovery rates drop. At 90 days, your chance of collecting that payment falls below 50%.”
Dr Robertson frames it in entrepreneurial terms: “If a business left that much inventory unsold, they’d fix it immediately. Healthcare needs the same urgency.”
Where AR Breaks Down
Jeff identifies three main failure points:
- Front-end data capture: Errors during patient intake or insurance verification.
- Coding and billing: Incorrect or incomplete claim submissions.
- Follow-up and appeals: Inconsistent pursuit of denied or underpaid claims.
“Most practices think they have a collections issue when it’s really a systems issue,” Jeff says. “You can’t fix what you don’t measure.”
Dr Robertson echoes this from a management perspective: “Without visibility, you can’t coach your team or improve outcomes. AR metrics are your scoreboard.”
Streamlining the Revenue Cycle
Jeff outlines practical steps to tighten AR management:
- Audit your current process. Identify where claims stall.
- Segment your AR. Break it down by payer and age for targeted follow-up.
- Automate communication. Use software to track claim status and trigger alerts.
- Outsource strategically. Partner with a reputable billing service when internal capacity is low.
- Train and empower staff. Education reduces human error and improves compliance.
“The goal is to turn AR into a proactive process instead of a reactive one,” Jeff says. “Automation helps, but people and culture make the real difference.”
Data-Driven Decision Making
Dr Robertson emphasizes how data transforms operations. “The right dashboard tells you which payers delay the most, where your denials come from, and how long your average claim takes to close,” he says. “When you have that information, you can fix bottlenecks before they cost you.”
Jeff agrees and adds that metrics must drive accountability. “If you can measure it, you can manage it,” he says. “When everyone in your practice sees the numbers, ownership follows.”
Building Trust with Patients and Payers
Jeff explains that transparent communication helps reduce AR at the source. “Patients appreciate clarity. When they understand their bills and payment options, collection rates rise,” he says.
He also stresses the value of consistent payer relationships. “Insurance follow-up isn’t about aggression—it’s about persistence and professionalism,” he says. “When payers respect your process, claims move faster.”
Dr Robertson connects this back to patient experience. “A smooth billing process isn’t just administrative—it’s part of care,” he says. “Financial stress can ruin even the best clinical experience.”
Technology That Works
Jeff shares examples of tools that have reshaped AR management automation systems that flag claims, generate follow-up reminders, and integrate with EHR software.
“Technology should simplify, not complicate,” he warns. “Many practices overpay for systems they barely use. The best solution is the one your team actually adopts.”
Dr Robertson highlights the power of integration. “When your software and staff communicate in real time, you eliminate blind spots,” he says. “It’s the same principle we apply in business operations: visibility equals control.”
Turning Cash Flow Into Growth
Jeff explains that recovering AR doesn’t just stabilize cash flow; it creates opportunity. “Once you clean up old AR, you can reinvest in better staff training, marketing, or expansion,” he says. “AR recovery is growth capital hiding in your own books.”
Dr Robertson agrees, noting how improved collections fuel long-term scalability. “When your financial foundation is strong, you can take strategic risks, new equipment, new locations, or digital marketing,” he says.
Jeff adds that consistency compounds. “Every clean month builds confidence. Over time, your AR rate drops, your cash improves, and your stress disappears.”
Key Takeaways
- AR is often the biggest untapped resource in healthcare.
- Broken systems—not bad patients—create collection problems.
- Data visibility drives accountability and recovery.
- Patient clarity and payer persistence improve results.
- Clean AR equals capital for future growth.
Dr Robertson closes with a thought every healthcare entrepreneur should remember: “You can’t grow what you can’t measure. AR management isn’t just accounting, it’s leadership.”
Jeff concludes, “Money doesn’t disappear. It hides in process inefficiency. Find it, fix it, and you’ll fund your own success.”
Listen to the Full Episode:
Recovering Your AR with Jeff Dorsey