Understanding Collection Rates. Pokemon Schwarz Rom Deutsch Download Kostenlos Android Studio. Our cardiology practice used an outside billing company that was not providing good business support. To start, I need to calculate.

The net collection rate is an essential medical billing metric to measure the ability of your practice to collect the money it is owed. By understanding the net collection rate, you will have a better grasp on how effective you are in collecting money owed to your practice. This easy to calculate metric will provide useful insight into how your practice is truly performing.

For our latest post, we will review what makes up the net collection rate and how this metric affects your practice so that you can better manage your operations. The adjusted (or net) collection rate is a measure of a practice’s effectiveness in collecting reimbursement dollars.

As an effective benchmark of your practice’s financial health, it represents the percentage of reimbursement achieved out of the reimbursement allowed based on contractual obligations with payers. Practices calculate their net collection rate to see how much revenue is lost due to factors such as uncollectible debt, untimely filing, and other non-contractual adjustments. Along with and denial rates, the net collection rate is key to developing a clear understanding of your overall revenue cycle. Calculate Your Net Collection Rate Start by dividing payments (net of credits) by charges (net of approved contractual adjustments) for the time period that you want to monitor. Then multiply by 100 to get the percentage value. Payments need to match with their originating charges for the most accurate calculations, so you might want to number these by “date of service” instead of “date of post.” If your practice management system can’t match payments with their originating charges, the practice should calculate this using aged data, typically from six months back, to ensure a majority of the claims used for the calculation have had enough time to clear.

Measure Your Performance Keep your reporting consistent by basing your calculation on a time period of at least 1 year—in other words, consider using a rolling 12-month schedule to calculate these figures. As with all billing indicators, performance will be influenced by the payer mix and specialty of your practice, as well as the level of automation in your practice’s billing and collection cycles. The recommends a net collection of 95% or higher; anything below that figure generally means you have room for improvement and can be an indicator of poor performance. Many practices are able to perform higher than 95% with expert management of their medical billing and by determining charge value. Charge value can be calculated as charges minus your contractual adjustments. This really tells you how much of the charge value you collected.

This figure reveals how much revenue is lost due to factors such as uncollectible bad debt, untimely filing, and other non-contractual adjustments. Additional Factors to Consider As with all billing indicators, performance as measured by the adjusted collection rate also will be influenced by your practice’s particular payer mix and specialty, as well as the level of automation in your practice’s billing and collection cycles. Other considerations to be aware of include applying inappropriate write-offs to charges and not having access to all fee schedules for your payers.

The net collection rate can be measured monthly, quarterly, semi-annually, or annually. The longer the timeframe, the more data you’ll have to provide an accurate assessment of your practice’s performance. Medusind improves the financial health of medical practices, groups, and hospitals with industry-leading medical billing expertise and technology. To learn more about our solutions. Digital Edition Hematology Williams.