Average Medical Billing Collection Rates
Are you the owner of a small medical practice? If so, it’s important to understand the significance of your average medical billing collection rates. Your collection rate is an essential metric to measure the effectiveness of your practice’s financial processes, and also helps ensure your practice’s financial well-being.
In this article, we’ll explain what collection rates are and how you can use this information to optimize your practice’s financial performance.
What Are The Average Medical Billing Collection Rates For Medical Practices?
As a small medical practice, understanding your collection rate is critical for maintaining a healthy bottom line. The average medical billing collection rates for small medical practices is anywhere from 85 to 95 percent of billed claims.
This number can vary widely based on several factors, such as properly executed coding and billing, the complexity of the procedures, payer mix, and the age of accounts receivable.
As mentioned earlier, a medical practice’s collection rate is a key metric to monitor when it comes to assessing the financial health of the practice. It’s commonly used as a measure of how successful the practice is at getting patients to pay their bills and how well they are following up on any unpaid accounts.
This rate is calculated by taking the net collections (amount actually received) divided by the total amount of services provided to patients.
Collecting the proper amount for services rendered is essential for the long-term success of a practice. Better collection rates lead to increased cash flow and often improved patient relations. Conversely, failing to collect on the full amount of services provided can lead to loss of income and a decrease in cash flow.
What Strategies Can Help Improve Your Collection Rate?
Managing a medical practice is no easy task. Not only do you have to keep up with rapidly changing regulations, you also have to be effective at managing the financial side of the practice as well.
By outsourcing your medical billing services to a reliable third-party provider, you can ensure your practice is maximizing its collections rate.
Here are four ways that medical billing companies can help improve your small medical practice’s collection rate:
Properly Execute Coding & Billing
From coding for procedures to billing for services, properly executing coding and billing is key for any medical practice. Practices should always ensure each claim is coded accurately and billed within the timelines required by the payer.
When your practice outsources to medical billing service providers, you can rest assured you will benefit from highly accurate coding and billing to ensure your claims are getting paid as quickly as possible.
Medical billing services providers have extensive experience deciphering the complexities of medical billing software and coding, so you can trust that you are getting the most out of every claim.
Understand The Complexity Of Procedures
Different procedures require different levels of documentation and coding. For example, a complex procedure such as an MRI may require additional coding and documentation to ensure proper reimbursement.
Practices should ensure that their staff is properly trained and knowledgeable about the coding and documentation for each procedure.
However, the medical billing process contains a complex system of rules, regulations, and procedures that must be properly followed to ensure accuracy and compliance. It can be difficult for a small medical practice to keep up with these complexities and ensure that they complete all of the necessary steps in the billing process.
An experienced medical billing company will be up-to-date on all the procedures, helping to ensure accuracy and compliance, reducing the time and effort spent on billing and helping the practice to improve your average medical billing collection rates.
Develop A Payer Mix Strategy
A payer mix strategy helps practices determine which payers offer the most profitable reimbursements to the practice. This should include analyzing reimbursement rates, fees and services associated with each payer, as well as the ability of the practice to collect payment.
By partnering with a medical billing service, you can access their existing relationships with commercial payers. This can help you develop a more effective payer mix strategy and negotiate better reimbursement rates for your services.
Stay On Top Of Accounts Receivable
Reviewing and aging accounts receivable regularly can help practices catch claims that have gone unpaid or been disputed. Practices should have systems in place to ensure that any unpaid or disputed claims are addressed quickly and thoroughly.
Alternatively, hiring the best medical billing service for their business can provide you with the resources you need to stay on top of your accounts receivable.
A medical billing service provider can review your accounts and work with payers to ensure that claims are processed in a timely manner, reducing your practice’s accounts receivable and improving your cash flow.
Outsourcing certain administrative tasks to a professional medical services organization can help you achieve the best collection rates for your practice – and PMN is the perfect choice for small medical practices.
PMN is a leader in medical practice management. They offer a wide range of tailored services specifically for the requirements of your medical practice, from billing and coding to HIPAA compliance and electronic medical records.
Outsourcing to PMN also helps to alleviate the burden of managing an ever-changing healthcare environment. Their experienced staff can handle all of the details, allowing you and your staff to stay focused on providing excellent medical care.
For more information on how they can provide effective solutions for your healthcare organization, contact them today at (949) 215-5055 or visit their lovely staff in Laguna Hills, Orange County, California.
What Are Medical Billing Services?
Medical billing services are third-party companies that help healthcare providers ensure claims are accurate and submitted in a timely manner to maximize reimbursement. They can also provide coding accuracy and review claims for reimbursement opportunities, providing guidance on legal regulations and best practices for billing.
How Much Does A Medical Billing Service Cost?
The cost of medical billing services for a small practice will depend on a number of factors, including the size of your practice, the number of services you provide, the complexity of your billing processes, and any additional services you may need. It’s best to get quotes from multiple providers so you can compare costs.
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