Cash flow and collections basics
By Scott McKenzie, founder of Home Care Agency Blueprint · Updated
A cash flow problem can start as unpaid invoices and open claims well before it shows up in the bank. Sorting what is open by age, and looking at it every week, keeps the problem visible while there is still time to act.
Aging buckets as a habit
| Bucket | What it holds | A habit to try |
|---|---|---|
| Current | Billed and not yet past the due date. | Confirm the invoice or claim arrived. |
| 30 | 1 to 30 days past due. | A polite written reminder, or a claim status check. |
| 60 | 31 to 60 days past due. | A call to the responsible party or payer, and the owner sees it. |
| 90 | 61 to 90 days past due. | The owner reviews it, names the next step and who takes it, and someone contacts the responsible party or payer again. |
| 90-plus | More than 90 days past due. | An owner decision on next steps, with counsel or your accountant where needed. |
Our own planning. The buckets are a way to sort what is open, not a prediction of what will be paid, and we do not publish industry figures.
A weekly receivables review
- List every open invoice and claim, by client and payer.
- Sort them into aging buckets.
- Name the next step and the person for each one.
- Look at denials and returned claims and who is fixing them.
- Compare what is open with the cash you need for payroll and bills.
Our own planning. Keep the review short and on the same day each week.
When a client does not pay
Deciding whether to pause new shifts for non-payment is an owner’s judgment, made with counsel. Think first about the client’s safety and any notice your state or agreement requires before services change or end. homecarepolicyprocedures.com, also published by Home Care Agency Blueprint, covers discharge and service policies.
Plan your runway while receivables age
If payroll comes due before payers and clients pay you, plan cash to cover the gap. homecarestartupcost.com, also published by Home Care Agency Blueprint, covers planning startup cash and runway. We do not publish averages for how long payment takes.
A planning aid, not a promise. Nothing on this site can tell you whether or when a client or payer will pay. It describes billing habits and points you to the rules that apply, so you can check them for your own agency.
Your payers and your state set the details. Each payer’s contract and provider manual, and your state Medicaid agency for Medicaid and EVV, decide what you can bill, how, and with what documentation. This site does not list payer or state rules. Not billing, legal, tax or financial advice. Payer and state rules vary.
What to do next
Frequently asked questions
How long does it take to get paid?
It depends on the payer, the client and how clean your billing is. We do not publish averages or promises. Track your own open items by age.
Should I stop services for a client who has not paid?
That is an owner’s decision to make with counsel, thinking first about the client’s safety and any notice your state or agreement requires.
Want to talk through your options?
A free 15-minute clarity call with Home Care Agency Blueprint. It helps people start home care agencies, so expect that perspective. You do not need your billing set up first.
Book a free 15-minute clarity call