3/10/2023 0 Comments Benchmark ptTo calculate, divide your total payments by your total payments plus adjustments over a set time period (the previous six months is a good place to start). Your practice’s net collection rate measures the effectiveness of your collection process. Compliance expert John Wallace notes that some states-like Washington and Minnesota-have Electronic Data Interchange (EDI) regulations that can result in DSOs as low as 20 days. (In other words, Current Receivables / (Payments + Adjustments / 30 days)) According to our in-house experts, you should be aiming for fewer than 35 days-with a range of 20 to 40 days, depending on your state. To calculate your DSO, divide your total current receivables at month-end by your payments and adjustments for that month divided by 30 days. Piggybacking on the KPI above, DSO-also known as days in receivable outstanding-measures the average amount of time it takes for you to collect payment from a payer or patient. Curious about other A/R targets? While these may vary by practice, general guidelines dictate that “75-80% of AR should be under 60 days, and no more than 15-20% of AR should be over 90 days.” 3. Anything more than that means you may have a few bugs to work out in your A/R process. To calculate, divide your total receivables over 120 days due by your total receivables. This KPI measures timely collection-in other words, how quickly, in general, you’re receiving the money you’re owed. (Check out this post to learn exactly how to calculate your net cost per visit.) 2. Otherwise, you may need to consider renegotiating your contract or going out of network. While there is no across-the-board target here-payers and costs will differ by specialty, region, and contract-you will, at the very least, want to ensure that what you’re bringing in more than covers what you’re spending to provide care. That way, you can weigh those numbers against the cost of providing your services. Top Payers, Costs per Patient, and Payer Revenue per PatientĪs we explained in this blog, you’ll want to know the reimbursement amount you receive per patient from each of your top five to ten payers. Now, without further ado, here are those billing key performance indicators for outpatient clinics:Įssential KPIs 1.
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