Bill Sample / December 8, 2018 / Rosalie Cain
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.
When we started we used a very simple contract that really didnt cover much at all. When situations arose that were problems our contract was no help. We had to re-write it once we had been in the business for a while and knew what needed to be covered. So where does a new billing service start when they havent been in business long? Its hard to write a contract covering all areas and what to do when you havent experienced it yet. Most new billing services are working on limited capital and dont like to spend money on a lawyer writing a contract for them. Unfortunately many new services cut corners here to save money but thats not a good idea. Your contract should be at least looked over by a lawyer if not written by one. If possible you should try to find a general practice attorney who specializes in contracts.
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.