How to Measure Billing Quality for Medical Practice
Measure payment timeliness., Measure completeness of payment., Chart payment distribution.
Step-by-Step Guide
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Step 1: Measure payment timeliness.
How long does it take to get 50% of claims paid? Keep in mind that national average is 73 days.
A good quality billing process has relatively small median, e.g., half of the claims must be paid within 30 days, -
Step 2: Measure completeness of payment.
What is the percent of accounts receivable beyond 30 days, 60 days, and 120 days? The actual amount of Accounts Receivable beyond 120 days is considered uncollectable and labeled as a provider's loss for write off. , The shape of the distribution curve of Accounts Receivable illustrates billing quality.
A steep drop in terms of percents of accounts receivable shows good quality. -
Step 3: Chart payment distribution.
Detailed Guide
How long does it take to get 50% of claims paid? Keep in mind that national average is 73 days.
A good quality billing process has relatively small median, e.g., half of the claims must be paid within 30 days,
What is the percent of accounts receivable beyond 30 days, 60 days, and 120 days? The actual amount of Accounts Receivable beyond 120 days is considered uncollectable and labeled as a provider's loss for write off. , The shape of the distribution curve of Accounts Receivable illustrates billing quality.
A steep drop in terms of percents of accounts receivable shows good quality.
About the Author
Zachary Baker
Dedicated to helping readers learn new skills in creative arts and beyond.
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