What is defined as an account that has not been paid within a certain time frame?

A delinquent account is defined as an account that has not been paid within a specified time frame. This term typically refers to accounts receivable that are overdue and have not been settled by the debtor within the agreed-upon payment period. In the context of Revenue Cycle Management (RCM), identifying delinquent accounts is crucial for managing cash flow and maintaining the financial health of an organization. By monitoring these accounts, healthcare providers can implement appropriate follow-up strategies to encourage payment, which aids in reducing bad debt and improving overall collection rates.

In contrast, an active account refers to current accounts that are in good standing and receiving regular payments, while a closed account indicates that the account has been fully settled or deactivated. An open account typically describes an account that is available for transactions but does not necessarily imply that payment obligations are overdue. Thus, the distinction of a delinquent account focuses specifically on the lack of timely payment, which is key in RCM for effectively managing financial risks and maintaining revenue flow.