Changing billing companies is one of the riskiest months in a practice’s year. Claims can fall into the gap between the old company and the new one, payments can go to the wrong account and denials can sit unworked. With a plan, none of that has to happen. This guide walks through the switch step by step.
Before You Give Notice
- Read your current contract. Note the notice period, any termination fee, and what the contract says about returning data and working claims already submitted.
- Sign with the new company first. Agree on a start date before you tell the current company.
- Pull a baseline. Export an A/R aging report by payer, a list of open denials and the last three months of collections. You will use these to check the handover.
- Confirm system access. Make sure your practice owns the logins for your EHR, practice management system, clearinghouse and payer portals, not the outgoing company.
The Switch at a Glance
What has to be settled at each point
- Before noticePrepareContract read, new company signed, baseline reports saved
- Notice givenAgreeOwner of old claims and the cut-off date, in writing
- Cut-off dateHand overCharge entry and claims move to the new company
- First 60 daysCheckWeekly review against your baseline
Decide Who Works the Old Claims
This is the most important decision in the whole switch. Pick one of these and put it in writing:
| Option | How it works | Watch out for |
|---|---|---|
| Run-out by the old company | The outgoing company keeps working claims with dates of service before the switch, for an agreed period. | Their motivation drops once you leave. Agree on reporting and an end date. |
| New company takes everything | The new company works old and new claims from day one. | Old A/R work may be priced differently. Ask. |
| Split by date of service | One clear cut-off date decides who owns each claim. | Corrected claims and appeals on old dates must still have an owner. |
Plan the Payments
- Where the money lands. Payments should always go to the practice’s own bank account. If any payer pays into an account the outgoing company controls, change it before the switch.
- EFT and ERA enrollment. If bank details or the clearinghouse change, payers need updated enrollment. For Medicare, electronic funds transfer is set up with form CMS-588. Electronic remittances (ERA) usually route through your clearinghouse.
- Lockbox and paper checks. Decide who opens mail and posts paper payments during the transition.
The First 30 Days
- New company confirms it can log in to every system and portal.
- Charge entry and claim submission move to the new company on the agreed date.
- Both companies confirm in writing which claims each one owns.
- Weekly check-in: claims submitted, payments posted, rejections and denials.
- Compare the A/R aging report with your baseline every week.
Watch the Filing Limits
Every payer has a deadline for submitting claims. Medicare’s is one calendar year after the date of service, and many commercial payers set much shorter limits in their contracts. During a switch, ask both companies for a list of claims close to their deadline, and give those priority. See our guide to Medicare timely filing and the denial code for an expired filing limit.
Signs the Switch Is Going Wrong
- Collections drop more than usual for the season
- Claims with no status: not submitted, not rejected, not paid
- Rising rejections from the clearinghouse
- Payments posted late or to the wrong patient
- No one can tell you who owns a given claim
If you see these, ask both companies for a claim-by-claim list immediately. Most problems are fixable if they are caught in the first few weeks.
Checklist
- Contract notice period and exit terms read
- New company signed, start date agreed
- Baseline A/R, denial and collection reports saved
- All system and portal logins owned by the practice
- Owner of old claims agreed in writing
- Payment destination, EFT and ERA confirmed
- Claims near filing limits listed and prioritized
- Weekly check-ins for the first 60 days
Looking for a new partner? Compare medical billing companies, read how to choose one, or send one request and we will point you to companies that fit.
