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.)
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.
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.
Chiropractors treat, among other things, issues with the musculoskeletal system. Active therapeutic procedures are accepted as effective ways to treat many common conditions and therefore can be billed and generate revenue for a clinic. Two common CPT codes that might be used in a chiropractic setting include:
More than 43% of Medicare beneficiaries are not enrolled in Medicare Advantage plans, which were established to control costs and improve quality. However, as noted in the March MedPac Report Executive Summary of 2021, these plans average an estimated 104% of Medicare Fee-For-Service (FFS) spending. How does CMS plan to manage Medicare Advantage plans now?
Providers need to begin preparations for how to handle a return to pre-COVID-19 public health emergency (PHE) policies. As the saying goes, "you can't put the rabbit back in the hat." Some COVID-19 PHE policies are so well liked it will be very difficult for the government to return to pre-COVID-19 policies. For now, we have at least the promise of a 60-day notice to all governors precipitating the end of the PHE.
Are you using something other than two-midnight? Here’s why you shouldn’t be. Is there the possibility that your utilization management team and physician advisors are applying InterQual, MCG, or any other utilization tool other than the two-midnight rule to your Medicare admissions? Over the last few months, it has...
Question: If CCM hours/work is to be billed monthly, and CCM tasks are done daily throughout the month, should it be saved until the end of the month to bill, and should each date be billed as DOS in one claim?
Answer: According to CMS, “The service period for CPT 99490 ...
When reporting CCM or TCM codes, you will only get reimbursed for what is allowed. The E/M office visits can be coded in addition but are not interchangeable with CCM codes. You can bill an E/M visit during the time a patient is under Care Management, however, you can’t count time ...
Question: Is there a financial penalty for billing over the allowed amount?
Answer: Yes, if you are submitting claims to a contracted provider, you cannot bill over the contracted amount of your fee schedule. This is called balanced billing. There is also the no-surprise rule that protects insured and non-insured or ...