Bill Sample / December 8, 2018 / Karin Higgins
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.
If a website tries to access your financial information by asking for credit card numbers bank account info or PayPal details then you are probably dealing with a scammer. Treat free products like the ads on television. They are promotional items and you have no obligation to pay for them. In fact you are doing a favor for the manufacturers because you are participating in their programs. In case you have been scammed do not call the supposed customer service of the website because you will not get any response from it. If you are billed immediately call your credit card company and report an unauthorized billing. Lastly create a separate email account for the free sample programs. This is a good way to protect your primary personal email from spam and information theft.
It is a good idea to try to think of everything that can go wrong in the relationship and write down your feelings about how those situations should be handled. You should be able to come up with a long list. In the circumstances of a new biller it can be difficult to know what can go wrong. It has been sixteen years since we started our medical billing business and we are still learning about new things that can go wrong. Most providers expect to sign some form of contract when using a third party service and generally expect the billing service to produce it. They want to make sure they are covered as well as the medical billing service. Going over the contract with a provider starting out with you can set the stage for a successful relationship. You can go over the terms carefully making sure the provider understands what you need to make it a beneficial partnership. Most of us when we are starting our businesses do not realize how much a good contract can affect their business.