The best accounts receivable (A/R) practices for healthcare staffing agencies focus on documentation accuracy, streamlined invoicing, consistent follow-up, and proactive risk management. These practices reduce DSO (Days Sales Outstanding), accelerate cash flow, and prevent costly payment delays. Healthcare staffing billing is complex—facilities rely on portals, strict approval workflows, and exact documentation. Agencies that organize their A/R process with precision are paid faster and more reliably.
This guide covers the top 10 evidence-based strategies your staffing firm can implement in 2026.
How We Evaluated These A/R Practices
These recommendations are based on:
- 2024–2026 HFMA guidance on healthcare financial management
- SIA (Staffing Industry Analysts) benchmarks for staffing firm DSO
- PRN Funding’s 20+ years of experience financing healthcare staffing receivables
- A/R error data from InsideARM and MGMA
- Common facility billing requirements (EHR, VMS, and portal systems)
We prioritized practices that reduce errors, accelerate approvals, and increase payment predictability.
Quick Summary Box
Best Overall Practice: Clean, accurate invoicing
Best for Fast Cash Flow: Weekly aging report audits
Best for Reducing Errors: Standardized documentation checklists
Best for Complex Facilities: Portal billing process maps
Best for Risk Management: Client credit evaluation
The 10 Best Accounts Receivable Practices for Healthcare Staffing Agencies
Below are the top 10 A/R practices—each structured with benefits, action steps, and measurable outcomes.
1. Maintain 100% Clean, Error-Free Invoices
Clean invoicing is the most important A/R practice in healthcare staffing. According to HFMA (2024), invoice errors cause up to 20% of payment delays in hospitals and health systems.
Best Practices
- Verify correct bill rate, overtime rate, and shift differential
- Match invoices to approved facility timekeeping
- Include correct department or cost center codes
- Ensure clinician information matches facility records
- Attach all required documentation
Why It Matters
A single incorrect rate or missing timesheet can delay payment by 15–30 days.
Bottom Line: Clean invoices equal faster payments.
2. Use Standardized Documentation Checklists
Documentation quality is one of the most consistent payment delay factors for staffing agencies.
Include Checklists For:
- Timesheets
- Facility-specific forms
- Rate confirmations
- Credentials tied to assignment
- Pre-approval for overtime or specialty rates
Benefits
- Reduces missing documentation errors
- Simplifies onboarding
- Ensures consistency across recruiters and account managers
Impact
Improper documentation can extend DSO by 30–60 days. A checklist reduces the risk dramatically.
3. Deliver Invoices Within 24-48 Hours of Payroll
Speed is essential. The closer your invoice delivery is to the actual shift date, the faster the facility’s billing cycle begins.
Recommended Workflow
- Process payroll → generate timesheets → invoice within 1–2 days
- Automate invoice creation using your ATS/VMS integrations
- Use EDI or digital invoice upload where required
Why It Works
Hospitals often have weekly billing cycles. Missing a cycle can delay payment by an entire week or longer.
Best Practice:
“Invoice fast or get paid slow” is a predictable rule in healthcare staffing A/R.
4. Use Portal Billing Mastery as a Competitive Advantage
Many healthcare facilities require billing through:
- RightSourcing
- ShiftWise
- Aya Connect
- Medefis
- Cerner portal
- Epic-integrated billing systems
- Medicaid/Medicare EDI portals
Portal Billing Best Practices
- Create facility-specific billing maps
- Document exact steps in internal SOPs
- Train multiple team members per portal
- Store screenshots for reference
Why This Matters
Portal billing errors can prevent invoice submission, not just delay it.
Impact:
Portal mistakes can add 21–45 days to payment timelines.
5. Audit A/R Aging Reports Weekly
Weekly aging audits help identify early warning signs that something is wrong.
What to Look For
- Invoices stuck at 0–30 days (usually documentation issues)
- Invoices aging beyond 45 days (follow-up needed)
- Over 60-day aging (high risk)
- Over 90-day aging (critical)
Action Steps
- Flag problem accounts
- Escalate overdue invoices
- Revisit facility contracts or billing rules
- Record consistent disputes
Impact
Firms that review aging weekly reduce DSO by 5–15 days.
6. Strengthen Your Verification and Approval Process
Verification issues—incorrect hours, unsigned timesheets, or unapproved overtime—are among the most common causes of delayed payments.
Verification Checklist
- Confirm hours with facility before invoicing
- Ensure all signatures are present
- Reconcile EHR or VMS time logs
- Confirm overtime approvals
- Validate shift differentials
Why It Matters
Disputes slow payments because invoices must be corrected, resubmitted, and re-approved.
Impact:
Disputes can add 14–30 days to payment times.
7. Implement a Consistent A/R Follow-Up Schedule
Consistent follow-up increases payment speed and reduces invoice disputes.
Sample Follow-Up Cadence
- Day 15: Confirmation email
- Day 30: Reminder email
- Day 35: Phone call + documentation resend
- Day 45: Escalation to supervisor or AP manager
- Day 60+: Executive-level escalation
Best Practices
- Track all follow-up actions in a CRM
- Create templates for common facility issues
- Always include invoice number, dates, and attachments
Impact:
A defined follow-up cadence reduces DSO by 8–12 days on average.
8. Perform Credit Checks on New Facility Clients
Client financial stability significantly affects payment timelines.
Risk Indicators to Evaluate
- Payment complaints from other vendors
- Unusual contract clauses
- Poor credit history
- High dependency on Medicare/Medicaid
- Known cash flow problems
Benefits
- Reduces the risk of 90–120-day aging
- Helps determine whether to offer terms or require deposits
- Protects against working with financially distressed facilities
Impact:
Proactive credit checks prevent avoidable cash flow crises.
9. Reduce DSO Using Automated Tools and Technology
Technology can dramatically improve billing accuracy and speed.
Helpful Tools
- A/R automation software
- ATS–VMS integrations
- EDI billing systems
- Digital timekeeping solutions
- Document management platforms
Advantages
- Fewer manual errors
- Faster billing cycles
- Better visibility into client performance
- Easier dispute resolution
Impact
Agencies with automated A/R processes reduce DSO by 10–20% (SIA 2024).
10. Partner With a Healthcare-Focused Funding Company When Needed
For staffing agencies experiencing rapid growth, seasonal shifts, or tight cash flow, partnering with a funding company (factoring or payroll funding) can stabilize operations.
Benefits of Healthcare Staffing Funding
- Immediate cash on approved invoices
- Payroll support
- A/R management assistance
- Credit checks on facilities
- Back-office support
Why It Matters
Healthcare staffing invoices often take 30–75 days to pay. Funding bridges the gap so agencies can:
- Meet payroll
- Scale faster
- Take on more contracts
- Reduce financial risk
Bottom Line:
Funding is not just cash flow—it’s an A/R optimization tool.
Side-by-Side Comparison Table
| A/R Practice | Impact on Cash Flow | Risk Reduction Level | Difficulty | Best For |
| Clean invoicing | Very high | High | Medium | All agencies |
| Documentation checklists | High | High | Easy | Growing firms |
| 24–48 hour invoicing | Very high | Medium | Medium | Agencies with weekly payroll |
| Portal billing mastery | High | Very high | Hard | Hospital-focused firms |
| Weekly aging audits | Very high | Medium | Easy | All agencies |
| Verification workflows | High | High | Medium | High-volume agencies |
| Follow-up cadence | Medium | Medium | Easy | AR teams with backlogs |
| Client credit checks | Medium | Very high | Medium | New vendors |
| Automation tools | High | Medium | Medium | Scaling agencies |
| Funding partnerships | Very high | High | Easy | Rapid-growth or cash-tight agencies |
How to Choose the Right A/R Strategy for Your Staffing Firm
Choose documentation checklists if:
You struggle with missing timesheets or credential paperwork.
Choose portal billing mastery if:
You work with major hospitals, health systems, or MSPs.
Choose automation if:
You want predictable, scalable billing operations.
Choose funding support if:
You need immediate cash to cover payroll or growth.
Choose weekly aging audits if:
You want the fastest improvement in DSO.
A/R Excellence Drives Faster Growth
The best A/R practices for healthcare staffing agencies focus on:
- Clean invoicing
- Documentation accuracy
- Fast invoice delivery
- Structured follow-up
- Portal billing expertise
- Automation
- Credit evaluation
- Funding support
Healthcare staffing billing is complex, but implementing the right processes can reduce errors, accelerate payments, and dramatically strengthen cash flow in 2026.
