Many companies offer medical electronic billing services, each claiming to be the best in the industry. If you had initially offloaded your billing function to statement processing companies, you may be wondering if collection rates have improved substantially. Outsourcing billing is a good step in reducing costs but it might not improve your accounts receivables.
Collection can be tedious. It can get more difficult if there are complex billing rules and follow strict deadlines. In addition, healthcare and insurance companies try to delay or avoid paying the bills. With all these difficulties, it becomes more vital to assess the medical billing process and collections to determine which outsource company can provide a good medical billing service. Here are some measurement metrics to help determine an effective medical billing service.
The gross collection ratio is the total amount paid divided by the total charges billed. You should compare this to other ratios that conduct similar practices to yours. The net collection is similar except that the amounts are after write-offs. A good performing service will demonstrate ratios over 90%. The elapsed time between billing and collection is vital in evaluating the efficiency of a good billing service. You should have a standard elapsed time for normal cases and another for medical specialties. This can help you identify if the billing service does timely follow-ups with the payer and expeditious remediation of any outstanding issues.