To switch medical billing companies without losing revenue, plan a 60–90 day transition: give notice under your contract, agree who works the old accounts receivable (AR), move ERA and payment routing, transfer your data, and run both teams in parallel until the first payments post. Most cash-flow gaps come from skipping the AR run-out plan or the ERA change, not from the switch itself.
Signs It Is Time to Change Billing Companies
- Rising denials with no root-cause reporting
- AR over 90 days keeps growing
- You cannot get clear monthly reports or straight answers
- Claims go out late or charges are missed
- Your specialty’s coding rules are handled poorly
Track these with a few numbers before you decide: days in AR, denial rate and net collection rate. See our guide to days in accounts receivable.
The 90-Day Transition Checklist
| When | Step | Why it matters |
|---|---|---|
| Day 0–15 | Review your current contract: notice period, termination fees, data-return clause | Avoids surprise fees and gets your data back |
| Day 0–15 | Pull baseline reports: AR aging by payer, open denials, unbilled charges | Shows what the old company must finish |
| Day 15–30 | Sign the new agreement and give written notice to the current company | Starts the clock on the run-out period |
| Day 15–30 | Agree the AR run-out plan in writing (who works which dates of service, for how long) | Prevents claims falling between two vendors |
| Day 15–45 | Set up clearinghouse access, payer portal logins and practice management system access for the new team | New team can submit and follow up from day one |
| Day 30–60 | Update ERA (835) enrollment so remittances reach the right place; update EFT only if bank details change | Missing ERAs are the most common cause of unposted payments |
| Day 45–60 | Export data: patient demographics, open claims, payer contracts, fee schedules, credentialing records | Avoids re-keying and lost history |
| Day 60–75 | Go-live for new dates of service; parallel follow-up on old AR | Keeps both revenue streams moving |
| Day 75–90 | Reconcile: deposits vs posted payments, open AR by vendor | Confirms nothing was lost in the handover |
What to Do About Old Accounts Receivable
There are two common approaches. In the first, the outgoing company keeps working claims it submitted (a run-out period, often 60–120 days) and the new company takes everything after the cut-over date. In the second, the new company takes over all open AR on day one. The first is cleaner when the old vendor is cooperative; the second is safer when it is not. Whichever you choose, put it in writing, including who receives the fee on collected run-out claims. Our accounts receivable services team can take over aged AR.
ERA, EFT and Credentialing Changes
If your bank account stays the same, EFT payments keep arriving as before. What usually changes is where electronic remittance advice (ERA) files go, so the new team can post payments. For Medicare, ERA and EFT are managed with your Medicare Administrative Contractor (EFT changes use form CMS-588). Commercial payers use their portals or the clearinghouse. Check that provider enrollment and credentialing records are current with each payer before go-live.
Questions to Ask the New Billing Company
- Who will work my specialty, and what experience do they have with its codes?
- Which reports will I get each month, and can I see a sample?
- How do you handle denials and appeals?
- Who owns my data, and how do I get it back if I leave?
- What is included in the fee, and what costs extra?
Frequently Asked Questions
How long does it take to switch medical billing companies?
Plan for about 60 to 90 days. Most of that time goes to ERA and EFT enrollment changes, clearinghouse setup and testing, while the old company finishes working existing claims.
What happens to my old accounts receivable when I switch?
Agree in writing who works the existing AR. Usually the outgoing company keeps working claims it submitted for a set run-out period, and the new company handles all new dates of service.
Do I need to tell Medicare when I change billing companies?
You don’t notify Medicare about the vendor itself, but if remittances or payments must go to a new place, update ERA enrollment and, if your bank account changes, EFT enrollment (CMS-588) with your Medicare Administrative Contractor.
Can I switch billing companies in the middle of my contract?
Check the termination clause. Most contracts require written notice, often 30 to 90 days, and some charge fees on claims still in progress.
Planning a Switch?
Prospect Healthcare Solutions provides outsourced medical billing for practices across the U.S., with specialty billing teams for more than 30 specialties. Request a free billing review or call +1 (469) 935-4617.
