Knowledge is payment: understanding state prompt-payment laws.

Abstract

Faced with lagging receivables, hospitals across the country increasingly are suing delinquent payers to obtain payment. States have responded to the provider payment crisis by enacting and enforcing a rash of new laws requiring payers to pay claims within strict time frames or face steep penalties. To take advantage of the protection afforded by these laws, providers need to be aware of prompt-payment statutes in states in which they provide care, in which their patients live, and in which their payers are located. By becoming aware of their rights and obligations under these laws, providers can use the prompt-payment regulations proactively to avoid payment backlogs without resorting to litigation.