The billing of your medical practice is extremely important. There are all kinds of problems that can result in poor billing performance, which means that you’re losing money. For example, there are errors in your billing or you’re not effectively tracking what you’re owed when it comes to collections. Identifying your billing performance can help identify problem areas, thereby helping to make your practice run more efficiently and reducing the amount of money being left on the table.
Finding the time and resources to regularly track your billing performance can be challenging for smaller practices. A professional billing consultant will be able to do this for you. The following are some of the metrics that they will be able to track:
Gross Collections Rate – The Gross Collections Rate metric tells you the percent you’ve collected of what you’ve charged.
Net Collections Rate – The Net Collections Rate metric is important because it will give you a good idea of how well your practice is at collecting money that you’re owed. This metric needs to be tracked over time.
Days in A/R Ratio – The Days in A/R (Accounts Receivable) Ratio gives you an idea of how long it takes to collect payments. If you’re doing a good job collecting payments, then the Days in A/R should be less than 30 for basic services. If it’s above 40 or 50, then you have a serious issue with your collection process.
Denial Rates – Denial Rates need to be kept low as they can greatly affect your A/R levels and can result in delayed payments. If your denial rates are high, then something needs to be changed in your billing process.
Here at ProMD, we can track all important metrics to regularly monitor and evaluate your billing performance. Not only can we identify problems with your billing and collections services, we can pinpoint what needs to be done in order to improve your billing performance. When you work with us, we can help:
ProMD Practice Management is happy to help with your billing assessment needs so you can maximize profits and increase patient satisfaction. To learn more about how ProMD can make your practice run like a well-oiled machine, call 888-622-7498 or fill out our online form to request a billing assessment.