Bill Sample / December 8, 2018 / Rosalie Cain
Indeed samples are a great way to simultaneously give the client a specific set of options which in turn makes billing that much easier while maintaining control over your time and schedule. And when you consider that the time saved can be used to take one jobs that are perhaps more custom in nature (and thus cost more) then you can see that sample business proposals are an excellent idea. Not only that but it allows you get get through each project before the actual deadline which will result in more repeat business as well as a greater level of "word of mouth" marketing which is the best form of marketing for a business. Sample business proposals then are an integral part of your successful business and will allow you to grow your business that much quicker.
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.
This lag time roughly averages across all payers making DAR an effective comparison metric between payers for individual provider but invalidating it across multiple providers. One obvious advantage of DAR metric is its independence of charges. The averaging feature of this metric eliminates sensitivity to specific day or CPT but also hides the behavior shape of the accounts receivable curve. First-Pass Pay (FPP Rate) and Denial Rate FPP is the percentage of claims paid in full the first time upon submission (subject to federal or state timely payment regulations: 15 days for electronic submission and 30 days - for paper). Denial rate is the complementary metric to FPP rate. It counts the percent of claims that require followup and therefore cost more to process.