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News & Press: Practice Resources

Medical Billing Quick Tips for Physicians

Monday, March 9, 2020   (0 Comments)
Posted by: Practice Resources
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All medical practices need to maintain consistent cash flow and monitor their revenue cycle in order to ensure continued success.  These guidelines will get you started on the right track and help you avoid increasing aged account balances and uncollectible claims.

Establish Billing Expectations
Regardless whether billing functions are performed in-house or outsourced, the same standards should be met. The practice manager and physician partners normally establish billing performance goals using Key Financial Indicators including:

  •  Gross collections ratio – depends on practice fee schedule and typical billing patterns
  • Net collections ratio – should be between 95 and 99 percent
  • Days in AR – target is less than 30 days
  • Charge entry lag – target is 2 days
  • Point-of-service collection rate – should be as close to 100 percent as possible

Best Practices for Billing

  • Submit claims daily
  • Generate patient statements monthly
  • Post payments within 3 working days
  • Review and resolve denials within 2 working days
  • Follow up on delinquent patient balances after the second statement
  • Review insurance aging and follow upon claims beginning at 21 days
  • Address patient inquiries are addressed within 1-2 working days
  • Generate financial reports once monthly, and always review them using the Key Financial Indicators to track progress

All contractual adjustments and write-offs should be based on consistent, written guidelines and contract fee schedules approved by the office manager and the physician partners. 

For further questions regarding billing best practices or other practice support ideas, please feel free to reach out to Juliana Stanley.