Bill Sample / December 9, 2018 / Inez Nielsen
You need an understanding with your providers as to when you are going to be paid for your services. Doctors are often not the best businessmen and are sometimes not very good about paying bills on time. Especially when you are first starting your business it is vital that your provider understands when you expect payment and that you have something well written to protect you if you end up with someone interpreting the language of your contract in court. Each year you are in business you find additional things that need to be added to your contract. New situations arise that you realize should be covered in your contract. So how do you cover everything that needs to be covered? You need a list - actually several lists. You need a list of what you feel the providers responsibilities are. You need a list of what you feel your responsibilities are.
Make sure you take the time and experience of others to get everything you need covered in your contract. Are you feeling the crunch of a tight economy? Are you looking for fun and easy ways to save money? Well you are in luck because there are so many free product samples today that allow you to save money each week. Companies are using free samples as direct advertising tools. They want you to try their products for free hoping that you will purchase the next one. It is a marketing strategy that worked for many companies. This is the reason why free samples by mail programs have persisted over the years. For your part getting free items is a fun and convenient way of saving a few dollars each week. The range of free products available for you is amazing.
Days in Accounts Receivable (DAR) A growing number of days in accounts receivable are symptomatic of a faulty billing process. One way to determine DAR is to count days from the date of service to the date of payment for every claim and then average across all claims. A simpler way to compute average number of days in accounts receivable by taking a ratio of accounts receivable to average daily charges or Number of days in accounts receivable = (Accounts Receivable / Average Charge) x 365 This metric too depends on medical specialty patient demographics payer mix and CPT sample. Another downside is that this metric is sensitive to provider as it counts the lag time of unsubmitted claims for services already delivered.