Using time for E/M services
Some evaluation and management services (office visits, consults, initial hospital services, subsequent hospital visits) may be selected by time when counseling dominates the visit. The AMA describes counseling as discussion with a patient and/or family regarding diagnosis results, impressions, recommended diagnostic studies, prognosis, risks and benefits of management, instructions for management, importance of compliance, risk factor reduction, and patient and family education.
For office vis
Net Collection Ratio
The net collection ratio is calculated this way: Cash collections divided by net charges. Net charges are the difference between gross charges and required government and third party adjustments. Use gross charges, insurance adjustments and cash collections for the same time period.
Example: Gross charges = $3,740,318; Cash collections = $2,070,275; Insurance Adjustments = 1,588,554
Net Collections = Gross charges-Adjustments 3,740,318-1,588,544=2,151,764.
Selecting a Third-Party Collection Agency and Choosing the Correct Collection Program
Increasing cash flow through the use of a modern, third-party collection agency is a must for practice survival. With states reducing government funding and third-party payers reducing allowables, more and more dollars are being transferred to patient responsibility. Practices now must trim operating expenses and increase patient payments in order to stay in business.
Collection services are needed by all practices, but they are rarely used properly. Too often an agency is employed simply