Wiki Accounts Receivable - help

[AprilSueMadison]

I can't explain our accounts receivable to our doctor. Is there a class, webinar...SOMETHING...for medical accounts receivable?

We received less money in Jan this year as opposed to last year (I explained why)...but he wanted to know why our outstanding AR was not higher since we received less in January. Comparing 2014 to 2015 Jan 31.

I can't explain it well enough. Overall we brought in more payments, and had more payer adjustments between the years. That would offset a bad month.

I do not know how to handle this or explain it. Help please?

 

[cyndeew]

When you are comparing A/R, there are some useful accounting ratios that could explain what's happening. Here are some good articles:

http://www.physicianspractice.com/accounts-receivable/ar-primer-medical-practices
http://www.physicianspractice.com/a...mple-metrics-monitoring-your-medical-practice
http://www.physicianspractice.com/accounts-receivable/benchmarks-your-practice

What you have to do is analyze what has happened each month for the last year. You can do that with the ratios included in these articles.

 

[TThivierge]

Responding to Accounts Receivable Help

Hi April Sue,

In your computerized patient management system at your office is it set up to reflect certain adjustment codes? You can have a code to define each type of adjustment made on patient record, then at end of month or year print a report defining this. It would help you manage the office fiscal duties better and help the physician understand. Also this reporting is a good way to track where errors or funds lost.

As an example if adjustments are made for certain procedures then linked with a code such as :contracted allowance per insurance payer, late claim filing, wrong diagnosis selected, patient lost coverage under insurance payer, precertification not done, wrong CPT code used, need 2nd ins information from patient, credentialing not done, physician not in network, sent balance to collection agency, etc. All this would pop out on a report in which you can print out monthly.

 

[AprilSueMadison]

I apologize for the incredibly late reply to you both and thank you for posting. I appreciate the help! Currently it is month end again, so as soon as I'm done inputting everything I will go through the links and try setting up a report the way that you have suggested TThivierge.

I don't see our month end numbers unless there is a question, then they give me their reports and I have to figure out what is going on based on that. That isn't logical and the doctors NEED solid answers. I'm going to see what I can do to get a years worth of numbers and look through them.