Covered in FPM Quiz Patricia A. Guira, CPA T hink of your practice's stacks of uncollected insurance claims as piles of cash. Now imagine those piles of cash being swept into the trash. That can be the effect of not following proper accounting policies and procedures. For example, October 1999 ratios would reflect November 1998 to October 1999 performance.
Most employees hate the process of collecting unpaid bills.
In addition to putting policies and procedures in writing, your practice should observe a formal procedure for verifying that they're followed, ensuring that all charges are entered into your system, insurance claims are filed quickly and accurately, and insurance payments are examined carefully and challenged, if necessary. Monitor performance with statistical reports To prevent revenue problems, you should review your financial data with daily, weekly and monthly statistical reports. If this ratio begins to go down, it may be the result of increased contractual write-offs, or it may mean that your procedures need attention or that staff members are writing off payment denials instead of appealing them. The gross collection rate measures the discounts or adjustments of third-party payers. If your rate is less, remember that physician charges vary.