How healthy is your practice?
Medical practices are faced with many dynamic rules and challenging governance when it comes to getting paid. Ensuring the revenue cycle is strong, consistent, and healthy should be a priority. What are the symptoms of a “healthy A/R?” You cannot fully understand something you are not measuring. Developing and monitoring your accounts receivable (A/R) benchmarks is crucial to successful cash flow, and also a way to identify areas for improvement. Some of the key indicators and goals are:
Days in A/R
This will vary by specialty, payer mix, and state. What is your goal? I recommend your goal should always be “better than last month” and consistent. But here are some best performance measures to establish benchmarks to determine the health of your practice:
- Days in A/R — 30 Days or fewer; however, varies based on specialty, payer mix, and state.
- % of A/R in the Current bucket (0-30) — 50% or more of your A/R should be in the current bucket; better performing practices are over 60%
- % of A/R in the 90-day and over — 15% or less
- Denial % — 3% or lower
Other benchmarks to measure and trend:
- Gross & Net Collections
- Collection per RVU
- Charge Entry and Payment Lag Time
Download the Infographic to learn more about the key performance indicators to watch
What are the NextGen Healthcare tools and “preventative must do’s” for a healthy AR?
- Daily claim submission via BBP
- Working clearinghouse denials daily
- Use of RTS for eligibility and registration
- Scanning insurance cards
- Credit card integration with NextGen Healthcare and the CC pay functionality
- Use of NextGen® Real Time Edits (NextGen RTE)
- Use of NextGen Healthcare Claim Edit Libraries
- Kept Appointments with No Charges/Encounters with No Charges report for missed revenue
- Billing Encounters daily by use of the BBP
- Use of Claim Production Edits & Tasking
- Weekly (or Daily) Patient Statement Exports/Mailing
- Use of NextGen® Patient Portal for patients to pay their bills easily
- EFT and ERA registration and daily import/posting from your payers
- NextGen Healthcare Collection Letters for Unpaid Patient A/R via Worklog and BBP
- Worklog to task unpaid insurance and Patient A/R and Denials
Monthly Must Do’s
- Review NextGen Healthcare Aging Reports
- Open Task Reports
- Processing Bad Debt Patient A/R
- Calculate & Scorecard your Benchmarks!
All of these preventive measures will produce a healthy practice with steady A/R and cash flow.
Download the eBook “Seven Revenue-Driving Best Practices” for more insights into pocketing every dollar you are owed and ways to drive the financial health of your practice.