Seven Ways to Increase Practice Revenue

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Business operations data represent a relatively untapped resource for optimizing practice revenue, and can indicate areas of strength and opportunities for improvement.
Business operations data represent a relatively untapped resource for optimizing practice revenue, and can indicate areas of strength and opportunities for improvement.

HealthDay News -- Business operations data represent a relatively untapped resource for optimizing practice revenue, and can indicate areas of strength and opportunities for improvement, according to a report published in Medical Economics.

The first step is identifying the measures that most clearly demonstrate performance; these should show whether a practice is getting paid in a timely manner. Indicators to watch include accounts receivable, which shows how quickly a practice can turn receivables into cash and should be kept under 30 days; age of receivables, which shows how long receivables have been outstanding; and average daily charge, which should be tracked over time to identify patterns that show productivity issues or patient volume fluctuations.

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Other indicators to watch include collections percentage, which compares the payments received with what the practice is supposed to receive; clean claim rate, which should be close to 100% using technology; patient collection rates, with fine-tuning encouraged in this process in order to prevent large revenue shortfalls; and rejections and denials, which can highlight a wide array of problems.

"As practices move to value-based care, fully understanding and responding to key business data will be essential to realizing success," the authors write.

Reference

Seven indicators to optimize your practice's revenue. Medical Economics. http://medicaleconomics.modernmedicine.com/medical-economics/news/7-indicators-optimize-your-practices-revenue?page=0,0. Accessed February 05, 2016.

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