How long has it been since you analyzed your practice’s revenue cycle?
Today’s BIG Ideas podcast describes several steps I use when analyzing a practice’s revenue cycle. Listen for the data I gather and for a general approach to get started. The graphic on my web page shows several columns you might build in a Pivot Table analysis. I start by looking at the major procedure codes for the major payers. Then I build columns to look at charge dollars, the average charge, the total number of units billed, the allowed percentage, the allowed amount in dollars, and the amount paid in dollars. There is more information in the podcast, but you would be surprised how often billed charges or allowed amounts are not consistent. There are also payer contracting insights gleaned from analyzing a revenue cycle using this approach. Watch for an example in the graphic where the average payment is more than the average allowed amount. What could be causing this?
How healthy is your revenue cycle? Are you sure? In today’s medical practice environment, you cannot be too sure.