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18 Must-ask Questions to Select the Right Legacy A/R Vendor

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18 Must-ask Questions to Select the Right Legacy A/R Vendor

When converting to a new revenue cycle platform, best practices mean outsourcing your legacy accounts receivable (A/R) to an experienced outside vendor.

Because a successful legacy A/R wind-down is such a vital job, proper preparation in the pre-conversion process means issuing a request for proposal (RFP), providing enough information to generate a good response from candidates, evaluating candidates and their fit for your need, and allocating enough time to move through the contracting phase.

It’s best to secure your vendor nine to 12 months before your go-live so that you can resolve your legacy A/R six to nine months before go-live. But before you start the vetting process for your vendor, consider the following checklist:

  1. Will you issue RFPs or request proposals from current partners and industry leaders?
  2. If yes, do you have the right RFP to issue for this job and enough lead time to put out an RFP and receive bids?
  3. How important is local market knowledge of your payers?
  4. Are your vendor choices market leaders and will they collaborate with you on building key performance indicators (KPIs) to measure success?
  5. Do your vendor candidates have hands-on experience with your legacy platform?
  6. Are the candidates a good cultural and operational fit?
  7. Do you have a clear plan for the work you intend to outsource, i.e., pre-conversion clean up, post-conversion run down or a combination of both?
  8. Have you provided a detailed, aged trial balance and other reports so that quoted pricing is accurate and free from assumptions?
  9. Do you have clear definitions around the scope of work such as inventory age, financial class exclusions and grace period?
  10. When will inventory be assigned, and will it be cascaded pre-conversion?
  11. Will the A/R follow-up work be performed remotely on the legacy system, or will you use an electronic data interchange (EDI) approach to the vendor system? What is the upside or downside of each approach?
  12. Once there are finalists in the process, have you checked references?
  13. Once selected, do you have adequate time built into the process to accommodate legal, IT/EDI and project management resource demands?
  14. Will the vendor support interim remote resources during the implementation process?
  15. What reporting is available, and what KPIs will be benchmarked?
  16. What’s the best approach to fees to meet your objectives?
  17. What is the proposed rate and overall cost of the program?
  18. Does the vendor have a robust implementation planning document and process, and formal project management infrastructure and protocols?

Contact Parallon with your questions on going through a revenue cycle platform conversion.