Bill Sample / December 9, 2018 / Rosalie Cain
Contracts are kind of like insurance you dont need them until theres a problem. But when there is a problem its a relief to have one. There are really a lot of areas that you need to make sure you are covered in and a contract is really the only way to do that. When starting a medical billing business there are many things to think about and writing a contract is just one of them. There are many expenses in getting started and most of us just starting out dont want to spend our limited investment money on an attorney. So what do many of us do? We "google" sample medical billing contract and use what we think sounds good and make up a contract for our business. That can be a big mistake. Thats what we did sixteen years ago when we started our business except there was no "Google" then.
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.
Indeed samples are a great way to simultaneously give the client a specific set of options which in turn makes billing that much easier while maintaining control over your time and schedule. And when you consider that the time saved can be used to take one jobs that are perhaps more custom in nature (and thus cost more) then you can see that sample business proposals are an excellent idea. Not only that but it allows you get get through each project before the actual deadline which will result in more repeat business as well as a greater level of "word of mouth" marketing which is the best form of marketing for a business. Sample business proposals then are an integral part of your successful business and will allow you to grow your business that much quicker.