Practices should monitor their days in accounts receivable monthly and compare their days with the average days of other practices by specialty.
Days in Receivables Outstanding:
A/R/(last 3 months of gross charges/90) = Days in A/R
Example: 3 months of charges= $927,009; A/R = 567,828
Average charge per day=$927,009/90 or 10,300. (90 days in a 3-month period.)
567,828/10,300=55 days
Specialty normative data is available from the Medical Group Management Association or from Practice Support Resources. Many specialty societies publish it as well.
A practice with 45 days of accounts receivable has 30 days of average charges waiting to be collected. The lower the number of days, the better the practice is doing.
This measure is part of a management set of tools, which should be reviewed monthly to assess how well the staff is doing in collecting accounts receivable. It can have a short-term increase after a month when there were significant charges or a short-term decrease after a month when there were high collections. But, in general, it serves as an excellent early warning system of problems in the collection process.
###
Questions, comments?
If you have questions or comments about this article please contact us. Comments that provide additional related information may be added here by our Editors.
Until February 1, 2020, you can preview Find-A-Code's Patient-Driven Groupings Model (PDGM) home health payment calculator by going to https://www.findacode.com/tools/home-health/ .
In ICD-10-CM, hypertension code options do not distinguish between malignant and benign or between controlled and uncontrolled. What is important for code selection is knowing if the hypertension is caused by or related to another condition. The following table shows some of these options.
In 2020, Medicare will begin using a new Patient-Driven Groupings Model (PDGM) for calculating Medicare payment for home health care services. This is probably the biggest change to affect home health care since 2000.
How does the VA determine charges billed to third party payers for Veterans with private health insurance?
According to the VA. "38 C.F.R 17.101 stipulates the basic methodology by which VA bills third party insurance carriers. In order to generate a charge for medical services, VA establishes reasonable charges for five ...
It is agreed that TMJ disorders should be covered by insurance. There are often questions whether it is covered by medical insurance or dental insurance and where the line is that separates coverage.Medical Insurance typically is the primary insurance for TMJ disorders. The reason is that joints are found anywhere ...
Question: How do you modify a code submitted to the primary insurance company to let them know it is not covered by them so you can bill to a secondary?
