Old A/R - transfer to new Tax ID?

[Guest guest]

Anyone know the options for this situation?

Old practice dissolved August 2007, but Corp Tax ID kept going to work AR.

Now 16 months out from closure, but still $14k in refunds due (insurance and/or patients) and the billing company thinks there "might" be $10,000 in AR recoverable still (patients and insurance).

Don't ask why there is $14k in refunds still do - long story.

But even that $10k is really like $9k once we pay the billers, admin to deposit and recover it, CPA fees to do taxes for 2009, etc.

Plus I would really only recover 1/3 of that (3 total partners in the old business) or $3,000.

This article says http://medicaleconomics.modernmedicine.com/memag/content/printContentPopup.jsp?id=108738-- Usually, the last order of business in discontinuing a medical practice is dealing with accounts receivable. "It takes 12 to 14 months to collect 90 percent of the money owed you," Angotti notes

Anyway, I am voting to take my lumps and close the Corp 12/31/08 -- write off any remaining AR, cover the refunds I am responsible for on my own ($2,000+) and cut all ties with ex-partners and the hassle of keeping the Corp open.

However, one of the ex-partners wants to keep the old Corp going into 2009 to continue working the AR to the last dime.

A variation on this situation that I would be willing to do is the following...

1. Close out the Corp 12/31/08.

2. Transfer AR and Refunds based on which physician saw the patient for the visit for the AR or Refund due.

Does anyone know if there is an easy way to do this -- transfer AR to another Tax ID?

I really want to cut all ties to the old corp and be done with this chapter in my life -- but the one ex-partner really wants to continue the Corp to squeeze out every last dime -- which seems unlikely to be productive now that we are 16 months out, but I guess we have differences of opinion.

Thoughts?

I know there are some companies that will buy up AR, but doubt they will buy up AR this old.

http://www.capitalfreedomfunding.com/

http://www.prnfunding.com/

Here is some info..

http://www.allbusiness.com/insurance/health-insurance-government-health-medicare/11587081-1.html

http://www.modernmedicine.com/modernmedicine/article/articleDetail.jsp?id=111489

snip

Medical factors generally won't purchase A/R owed by patients. Some even turn down receivables from workers' compensation. Instead, they focus on cash flow from traditional third-party payers. Checks from private insurers either go straight to the factor or else to a "lockbox" bank account in the doctor's name. Daily deposits in such an account are automatically "swept" into another account owned by the factor. Meanwhile, the physician is still responsible for continuing to bill insurers, post payments, and chase down A/R.

Technically, factors can't buy A/R from Medicare and Medicaid outright: Federal law prohibits doctors from assigning those claims to other parties. However, doctors can still throw this A/R into factoring deals without breaking the law, as long as government checks first go to a lockbox account in the doctor's name. Most factoring companies offer the same basic terms. They usually advance up to 85 percent of A/R on a daily, weekly, or monthly basis. Bigger advances go to doctors with more reliable, faster-paying insurers. Factoring contracts are generally for one year, although some companies will cut shorter deals. The main differences among factors lie in their fees. The discount or factoring fee—equivalent to interest charged by a bank—ranges from 1 to 6 percent for every month A/R remains uncollected. The more A/R you sell, and the more collectible it is, the lower the rate you can secure.

snip

Locke, MD