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Manager’s Guide for Monitoring a Profitable Practice Contents Billing and Collecting........................................... 1 Managing Expenses .............................................. 6 Staffing & Employee Management.................... 8 Appointment Scheduling/Registration .......... 10 Financial Management ...................................... 11 Practice Productivity ......................................... 14 Record Keeping.................................................... 15 Marketing/Patient Relations ............................ 16 Compliance ........................................................... 18 ISBN-13: 978-0-9744396-3-1 ISBN-10: 0-9744396-3-0 Copyright Š 2008, Practice Support Resources, Inc., 4230 Phelps Road, Suite E, Independence, MO 64055 800-967-7790 All rights reserved. Unauthorized reproduction by any means, in whole or in part is strictly prohibited without prior authorization.


Manager’s Guide for Monitoring a Profitable Practice FUNCTION Billing & Collecting FREQUENCY AREA OF REVIEW Weekly Allowed & Disallowed Payments

Practice Support Resources, Inc.

WHAT TO LOOK FOR Have all EOB’s (Explanation of Benefits) statements from Medicare, Medicaid and other carriers been reviewed and carefully filed for easy reference? What is the difference between amount submitted and amount paid? What are the reasons for denied claims?

Resubmitting Claims

Weekly

How many claims have been resubmitted? Were they resubmitted timely? Are the correct codes being submitted? Are there indications that the practice’s charges are too low?

Total Accounts Receivable

Monthly

What are the total accounts still outstanding? Total accounts receivable are amounts owed to the practice by patients, third parties and others for services provided by the practice. Is there an increase over the previous month? How does it compare to the same period last year?

Accounts Receivable Ratio

Quarterly

This provides a relative measure of the average number of months that a practice’s billed charges are outstanding pending collection by the practice. Reviewing this figure helps monitor and control the practice’s collection of outstanding receivables. A low ratio signifies more control than a high ratio.

Aging of Accounts Receivable

Monthly

What is the breakdown of dollar amounts and percentages by age of accounts; Current 31-60 days 61-90 days 91-120 days 120 days & over? Is there a large percentage over 120 days old? If so, why? Is there a significant increase in the number of older accounts from the previous period? Are collection procedures for each age category followed by the practice (letters, notices and calls)?

Collection Agency

Monthly

What amount and number of accounts were turned over to a collection agency this month? What amount is currently with a collection agency and still uncollected? What is the amount collected by the agency YTD? Is the collection agency agreement being followed and is it doing a good job?

Total Accounts Receivable Average Monthly Adjusted Fee for Service Charges

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Manager's Guide to Monitoring a Profitable Practice