Bill Sample / December 8, 2018 / Lessie Larson
Followup may take the form of a phone call to payer to discover a lost claim or to receive interpretation of denial message correction of earlier submitted data resubmission of the original claim consultation with the provider and medical notes or denial appeal. Both FPP and Denial rates are very important metrics often used for billing process improvement. The upside of FPP/Denial metric is that it is charge-invariant but its downside is that it hides the differences between process imperfections on the claim submission and claim payment sides. To identify patterns of problem CPT codes or payers FPP/Denial metric needs to be computed and compared across all pairs of payer-CPT code which is a standard feature for modern billing technologies.
Patient Liability Percent of Patient Liability is the ratio of patient responsibility to total billed charges and it roughly reflects patient deductibles. This measure is important in measuring front office function as it has little to do with clean claim submission or effective followup. Percent of Accounts Receivable Beyond 60 90 and 120 Days (PARB60 PARB90 and PARB120) PARBX resolves the sensitivity issue of DAR metric and offers simple and charge-invariant metric of billing process. Its graphic representation has a skewed bell shape. Its steepness represents billing process quality: a steep curve and thin tail means healthy billing process while a flat bell and a fat tail means billing problems. According to the MGMA survey 25.35 percent of the average family practices accounts receivables were more than 120 days old in 1997.
Have you ever taken your car to the shop and said "Gee I dont have money to pay for that new transmission. Can I float you a loan?" or gone to the supermarket and said "Sorry I dont have enough money for this cart full of food. Can I pay you later?" It sounds harsh but veterinarians have businesses to run just like everybody else. And too many with good intentions and big hearts have gotten burned by offering "credit" or "payment plans" to non-paying clients. The result? Its virtually impossible to find a veterinarian willing to offer services today with payment tomorrow. Lets face it quality vet care isnt cheap. Think about it though--would you want it to be? Because if it was cheap--Id be worried. Because it would be your pets health that had to suffer! So how can pet owners save money on their veterinary bills? Pet insurance is one answer but there are many other tips that pet owners simply dont know about it.