What is your collection? This question is repeatedly made by doctors, coaches, students, partners, prospective billing companies, spouses and everyone else who are interested in the success of the exercise. Most doctors react in proportion, say 90%. The higher the number, the better the collection rate. But what does this number mean and really determines how successful the practice is to gather?
Published Collected Ratio
Usually, the book data collection rate is simply the total amount of divided by in a given month in that month that month. For example, one practice is $ 100,000 in January. In January they collect $ 75,000. The collection rate is 75%. It is easy to understand and easy to calculate.
The problem with this approach is that on average (according to MGMA), medical practices can wait up to 73 days for the services provided. The $ 75,000 collected in January was actually calculated in November and December, and services could be scheduled in October and November. So what happens if in practice $ 200,000 a month has been generated by January 1, and suddenly fell to $ 100,000 a month? The $ 75,000 collected in January is poor. On the other hand, if in practice $ 75,000 a month were charged, until January 1, the $ 75,000 collected in January corresponds to 100% of the billed amount.
But there are more complications. What if the exercise in December would involve an NPI question, or did the EOBs be processed to the wrong address? In this case, the $ 75,000 posted in January was actually paid out in the previous months. This means that the actual collection rate is as low as 75%.
So with these issues, why do they measure the billing performance of the collection rate? The answer is too many times that they have no choice. Many practice management systems require monthly reports to be published, including fees and postings posted in a given month, but there are few alternative ways to view collection performance data.
Amounts posted are important because the exercises need to know how much money has been received over a month. You have to match this with your bank account in order to make sure that all your money has been cleared. From here you can easily divide the two numbers and get the share of the collection. Unfortunately, as we saw above, this number is meaningless if the practice is to measure their billing performance.
Alternative: Turn everything back on date of service
To monitor billing performance, we have to compare apples with apples. We would like to see how much the services provided in a given month actually paid. For example, if the office saw 500 patients in October and generated a $ 100,000 fee for these visits, we would like to know how much $ 100,000 has been paid, no matter when the money was.
The key is to compare fees with payment deadlines by service date and not when calculating the dates on which they were posted. It's not that easy. While exercises can add checks received over a month or view bank statements to see how much money has been received over a given month, it's time-consuming to look at each EOB and compare service dates so you can see how much you've paid for October services.
For this you need to invest effectively in a program that incorporates this feature. For example, you can use the $ -Stats report in Vericle. This report shows that based on service providers, management codes, insurance companies, and other criteria, a service date range shows the breakdown of fees and collections.
Slice, Dice, and Drill-in
If you have a high level of view of the data then it makes sense. This is useful if the software allows dynamic rendering and filtering of the report. For example, if we look at CPT code breakdown, the percentage paid should be sorted out to calculate something with a total amount of $ 1000. This eliminates "noise" and allows you to concentrate on problem areas.
If you've already seen the problem area, look at each example. This is called "Drilling In" and the software should make it easier. Click on any line in Vericle to scan that line and view the receipts belonging to that bucket. The list of claims also contains relevant information about the status of the claim, the total billed and paid amount, and the audit log details to help you see how the tracking group handled the claim.
Effect on Profit Profitability
An overview of the Service Date Collection Report described above can have a significant positive impact on practice. Compare apples to apples, more accurately measure your billing team's performance, quickly handle pin-point collection problems, and easily see the benchmarks. Then, take steps to correct the problem and increase your collections.
Source by sbobet