Is your practice losing revenue due to too many days in accounts receivable? ClinicAnywhere has the experience and knowledge you need to turn your practice around. Don’t lose another dollar. Check out these tips on how to improve your medical account performance and better manage your revenue cycle.
Medical Account Performance
It is understood that your monthly accounts receivable should never be more than 1.5x your monthly charges. When you conduct your practice analysis, you may ask why the practice is not collecting more accounts receivable. There are multiple ways to measure your performance. Using these, you may find the issue.
One of the most common ways to measure your medical accounts receivable performance is to measure the number of days it takes to collect the payments. You can calculate the number of AR days by dividing the number of charges over the number of days.
Calculate Days in AR
Let’s say you have $100,000 in total charges over the last six months, which is a span of 182 days. Your average daily revenue is equal to approximately $550. Your total AR divided by that number gives you the number of days. So, if your total AR is $80,000, the days in accounts receivable is 109. That means it is taking your practice an average of 109 days to collect payment.
Because it takes about fourteen days for most insurance companies to pay after receiving a claim, your practice should ideally strive for thirty to sixty days in AR. Patient copays only make up about 20% of practice revenue. So if you haven’t been making revenue cycle management a priority, you could be losing hundreds of thousands of dollars over the year.
The best way to make sure no revenue is lost is to implement an effective revenue management plan. Define payment rules for patients. Consider cash flow and claim rejection solutions. Hire a third party medical billing company to help ensure accuracy and efficiency.
ClinicAnywhere Can Help!
ClinicAnywhere has been helping clients improve data management, boost profitability, and shorten AR days for years. We have experienced experts waiting to get your practice back on track. Don’t wait! Revenue is on the line. Contact ClinicAnywhere today to get started with effective revenue cycle management.