Monthly financial reports a physician can’t afford to neglect!

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Monthly Financial Reports a Physician Can’t Afford to Neglect!

No reputed doctor would recommend a treatment without first taking a look at the patient’s history.

In the same manner, for taking a better financial decision, it is required to have a well- maintained financial data. Data forms the framework of any business entity. In order to obtain accurate financial reports, you have to take care of your financial transactions on a daily basis.

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1

PROFIT & LOSS STATEMENT

2

ADJUSTMENTS

3

AGED ACCOUNTS RECEIVABLE

FINANCIAL REPORTS

4

CREDIT BALANCE

that physicians should review on the 10th day of every month.

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PATIENT BALANCE

PROFIT AND LOSS STATEMENT The P&L, as it's typically called the tally of revenue and expenses for a given period of time, includes the key financial indicators such as gross revenue, net revenue, and overheads.

You can include key clinic metrics: • New patients • Patients visits • Charges • Charge per visit

When reviewing the P&L statement make a comparison between present with the same month of last year for estimating your financial growth.

ADJUSTMENTS Adjustment is the point where you are going to identify clinical errors. It is also known as “write-offs”, defined as detailed categories wherein the staff posts the amount between an actual payment and your standard fee.

If your report contains broad categories, such as miscellaneous or insurance write-offs, then it is a problem.

Ask your manager to explain all vague sounding categories, and if required, request for more-detailed adjustment categories.

AGED ACCOUNTS RECEIVABLE A/R report is the summary of potential revenue earned from payers and patients for the services you have rendered.

For Analysis, if the payment period is “Days” 30 or less is good, but “Days” 50 or more can be a trouble.

In your medical financial report, if there is approximately 15% of total delay in payments in the 120+ days, this indicates there is a problem in your A/R statement.

PATIENT BALANCE Assessing the patient’s outstanding is of utmost importance. Ask the staff to call patients instead of sending out reminder letters and follow-up on the payments regularly. Â

Maintain accounting books separately for the patients as they might not pay and ask for back-up (old) details.

CREDIT BALANCES Credit balances are also known as financial liabilities.

A physician should review and approve the credit balances that staff has researched and verified every month.Â

This report should be as close to zero dollars (nil).

Keeping a check on all accountingrelated reports and activities is often time-consuming.

OUTSOURCING is the best solution to handle such tasks in a timely manner.

Simplify Your Healthcare Accounting Books

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