Why does revenue dip after a system switch?
Staff move slower while learning, templates and fee schedules need setup, clearinghouse and payer enrollments must be completed, and some claims get held or rejected until everything is mapped correctly.
Reduced scheduling during training days adds to the dip. Even well-run conversions often see a few weeks of slower claims and payments. The issue is temporary, but the costs of running the practice are not.
How can I reduce the dip?
Complete payer enrollments and clearinghouse setup before go-live, keep the old system for working existing AR, schedule lighter during training, and test claim batches early.
Running both systems for a while lets billing staff keep collecting old AR while new claims flow through the new system. Ask your vendor for a realistic timeline and plan the funding to match it.
What should the conversion budget include?
License and implementation fees, training time, temporary staff, reduced schedules during go-live, and the operating costs that continue while claims are slower.
Many practices budget for the software but not the cash dip. Adding a line for the revenue gap makes the decision clearer and avoids scrambling mid-conversion.
| Item | Before go-live? | Why |
|---|---|---|
| Payer enrollments complete | Yes | Avoid held claims |
| Fee schedules loaded | Yes | Correct charges |
| Test claims sent | Yes | Catch rejections early |
| Old system kept for AR | Yes | Keep collecting |
Worked example: a pediatric practice switching EHRs
A pediatric practice with $150,000 in average monthly deposits switches EHR and billing systems, expecting slower claims for about six weeks and budgeting $40,000 to cover the dip and extra staff hours. Using an illustrative factor rate of 1.20, $40,000 would mean $48,000 repaid over roughly 6 months: 126 daily payments of about $381.
That works out to about $8,000 a month, or 5.3% of the $150,000 this business deposits monthly, and the total cost of the money is $8,000. Funding the dip turns a stressful conversion into a planned project with a clear end date.
For comparison, repaying the same $48,000 over 4 months would lift the monthly outlay to about $12,000, or 8.0% of deposits, and a shorter term can come with a lower factor rate, so comparing both versions side by side is worthwhile.
| Average monthly deposits | $150,000 |
|---|---|
| Amount funded | $40,000 |
| Factor rate (illustrative) | 1.20 |
| Total repaid | $48,000 |
| Cost of the funding | $8,000 |
| Term | about 6 months |
| Daily payment (126 payments) | $381 |
| Payments as a share of deposits | 5.3% |
Who this fits
Usually a fit
- Practices with a planned system conversion
- Groups changing billing companies
- Owners who want to protect payroll during go-live
When a practice may want to wait
- Practices that can absorb the dip from reserves
- Conversions without a clear timeline
- Practices without deposit history
What you’ll typically need
- Recent business bank statements
- Conversion timeline
- Practice details
Frequently asked questions
How long does a conversion dip last?
It varies by practice and vendor; plan with your vendor’s realistic timeline.
Can funding pay for implementation costs?
Yes; working capital can cover any business cost.
When should I apply?
Before go-live, so funds are ready before deposits slow.
Does a 500 credit score rule me out for an EHR conversion?
No. Applicants from 500 can be reviewed for an EHR conversion; the deposit history does most of the work, and better credit typically improves the terms you are offered.
Switching systems soon?
Apply and plan the dip.
Updated October 6, 2026