Watch Contractual Allowances

Are you absolutely certain that payers are taking appropriate contractual adjustments from your charges?

Watch contractual allowances carefully in your practice.

Today’s BIG Ideas podcast is from an onsite visit to a practice in the Midwest last week.  The Revenue Cycle Director asked for a report of all adjustments that equaled the billed charge.  After I wrote the code in SQL Server, we were surprised to find a payer writing off the entire charge as if it was a contractual allowance.  Listen to today’s podcast for why that adjustment is a serious concern and how you might discover similar problems in your practice, with or without SQL code.  This is another example of revenue leaking from a practice at a time when we need to find and collect every dollar.  I hope these podcasts are helpful for you.