Use Medical Billing Calculator For Lost Revenue
You may have lost revenue in your medical practice this unfortunate year. When you can earn more so the point is that how much you will leave on the table?
Keeping track of all the billing and collections by just relying on your memory isn’t feasible in today’s fast-moving world, and the Healthcare industry is no exception.
The good news is that you can keep track of the collections you received using modern technology.
Luckily, Medmax offers you a custom calculator by which you can calculate how much money you might be leaving on the table.
You may still have a non-payment situation. But, the aim is to decrease its chances as much as possible. Some metrics give you an idea of the lost revenue: High-risk Account Receivable and net collections.
We’ll talk about these metrics in detail!
The net collection is the payment you receive from payers. It is the payment you expect to receive minus what you received from the payers. There are several reasons to miss on the revenue opportunity:
- Insurance companies may be paying according to old fee schedules
- Patients may not pay for out-of-pocket expenses
- Insurance companies may reject claims resulting in non-payment
You can calculate your net collections keeping in view the following factors:
- Gross collection amount
- Adjustment amount
You can know your net collections by:
- Subtracting your adjustment amount from total charges
- Take note of all the collections and divide by the most standard calculation.
At Medmax, we ensure a net collection standard of 95%. If you are getting a low rate, you can lend some external medical billing help.
High-Risk Accounts Receivable
Your missed collection piles up with the passage of time. The aging A/R is at risk of not getting paid at all. It is evident that not every claim will be reimbursed on time. The chances of receiving money enhance with a lot of aging A/R.
The ideal time to receive the reimbursement is within 30 days. If your insurance company is slow at processing claims, you can see this time extend from 30 to 60 days. It is still acceptable to get your revenue paid. However, if this period increases to 90 days, getting paid decreases manifold.
Medmax works out on the aging A/R of your organization. We get reimbursed after 90 days more than 90% of the time. The chances of non-payment increase after 90-120 days of claim submission.
To get you a fair idea of how much your expected revenue will change into actual dollars, Medmax can help you with its custom calculator software.