Bill Sample / December 10, 2018 / Dionne Boone
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.
Medical billing is a leading business related to the health care industry. Medical billing business plans help you achieve your goals in the new business sector of medical billing. Like any other businesses proper planning leads to a winning situation. To start a medical billing service either in a small office or a cooperative business with other medical services you should do a plenty of research to create a detailed business plan. Medical billing business plans guide you throughout the billing business to evaluate the medical practices that fall within your target market segment. The demand for health services is on the increase these days. Medical billing business plans describe all the objectives and the nature of services.
When we started our Medical Billing Service in 1994 there was very little information available on medical billing services let alone medical billing service contracts. In fact some of the information indicated that you really didnt even need a contract if you didnt want one. That couldnt be further from the truth! Having a contract for your Medical Billing Service is very important to protect both you and the provider. Many new billing services ask us for a sample contract or a copy of our contract. Using a sample contract or somebody elses contract is not a good idea. It would be like taking somebody elses will whiting out their name and writing in yours. The only time it will hurt you is when you die and then your family could be in trouble.