Evaluation

• One important benchmark is the days outstanding for accounts receivable. For example, outstanding payments that are 45-60 days old should represent the largest percentage, while older than 90 days should not exceed 15 percent. This is a good starting point for many practices.
• Assessment through simple or complicated figures is helpful, but evaluation must also be done in other ways. There must be a tracking system for errors. Determining the type of errors and the amount of occurrence can give you important insight into how billings are implemented. In addition, track payment denials. Seeing a compiled list of why denials occur can pinpoint errors that might be at cause.

With this assessment data in hand, look at the broader picture.:

• Do the same errors keep happening?
  
• Do certain patients continue to crop up as problems?
  
• Do you continue to have denials for certain reasons?

For effective billing, consider the staff perspective, the well-communicated process, and the evaluation procedures. Only when all the components combine will billing errors be reduced and revenue increased.

Sources for this article:

Brown, T., Bryant, R., and Menier, S. Managing Accounts Receivable. Hematology/Oncology News and Issues.

Sacher, J. and Martin, M.L. Are you in Compliance? Keeping up with Billing and Coding Regulations. Physician's Practice.

Woodcock, E. Billing Blunders: Is your Practice Making Costly Mistakes? Physician's Practice.

Medical Billing Clearinghouses - benefits and risks of outsourcing your practice's billing. 

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