Bill Sample / December 7, 2018 / Mary Anthony
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.
Billing performance measurement is an integral part of medical practice billing process and a prerequisite to effective practice management. Systematic measurement becomes mission-critical with growth of billing complexity or outsourcing of the billing function. Traditional billing metrics are limited in scope and focus on claim submission process ignoring process imperfections on the insurance (payer) side. Modern computer technologies allow both productive measurement and effective action by the disciplined billing office to improve claim submission and payment processes. Using appropriate metrics helps improve policies and procedures shorten revenue cycle reduce patient complaints improve financial performance and compliance increase cash flow reduce bad debt identify areas of potential growth improve employee morale increase productivity and reduce costs.
Have you taken your pet to the vet recently? Chances are if you did you spent a lot of money! Quality pet care isnt cheap--but we all know how important it is for the health of our four-legged family members. Today were blessed with many diagnostic tools and procedures that werent available years ago. Problem is all these advancements come with a large price tag. And pet owners are often caught in the middle. They love their pets like family members but sometimes cant afford to take them to the doctor or pay for life-saving procedures. As a veterinary technician its one of the hardest things I have to deal with on a daily basis. Here we are with all the tools and skills available to help a pet but the owner simply doesnt have the funds to pay.