A streamlined billing process is one of the most important parts of your practice and one of the most insightful ways to gauge your fiscal health. Medical Billing Reports provide valuable information regarding each claim, payment history, and other financial aspects of your practice. Running a wide range of reports should take priority, particularly at the end of each year. The following are the most useful EOY medical billing reports you can run this month to keep your practice profitable and growing strong in the upcoming year.
Aging Report for Accounts Receivables
Your practice’s Accounts Receivable Aging Report is arguably its most important financial report. The report reveals which claims have not been paid by insurance companies.
In an Accounts Receivable Aging Report, your practice can view which claims are outstanding, and how long they have been left unpaid. The Accounts Receivable Aging Report normally highlights medical insurance claims open for longer than a month.
It is important to watch claims that go unpaid longer than 45 days. Unpaid claims after 90 days may require urgent action and as such, accounts Receivable Aging Reports should be checked frequently.
There are many factors that can affect your Accounts Receivables number including whether your practice uses paper or electronic claims. Circumstances of the claim may also be a factor in delay of payment. For example, automobile accidents, workers’ compensation claims and out-of-state claims will likely take longer to be paid.
Though it is possible to generate your aging report manually, it is time-consuming. Today’s average medical practice finds they can easily leave funds uncollected when they neglect to use software that generates a reliable Accounts Receivable Aging Report.
Reports on Payment Trends and Collection
Payment Trend and Collection Reports can help you take a closer look when you see red flags in your Accounts Receivable Aging Report. The reports show how much you have billed and collected. This number is included in the Insurance Payment Trend Report.
Patients’ payment history is a valuable set of reports your practice should analyze regularly.
Your practice’s profitability depends on tracking patient payments. Debt from medical bills is a leading cause of bankruptcy in the United States, and many people delay or skip payments and it can be difficult to get financially strapped patients to pay their medical bills.
Like the Accounts Receivable Aging Report, the Insurance Collection Report shows how long a claim has gone unpaid. Together, these reports can help identify payment issues and make it easier to solve outstanding issues.
Key Performance Indicators
Key Performance Indicators Reports provide critical financial information for your practice. Performance Indicators highlight the most profitable procedures and tracks your charges, collections, outstanding receivables, and total adjustments for each procedure. This combined information delivers a clear picture of your procedure, appointment, and treatment profitability.
In the past, medical practices created Key Performance Indicator Reports manually, sometimes taking months to complete. The information can now be easily compiled into a simple, straightforward report when utilizing the right software.
A Key Indicators report should be run weekly. As red flags rise, a comparison to the previous week’s report can identify a problem. When sudden changes are seen in collections, investigate further to determine where the issue is coming from and how it can be quickly resolved.
Tracking clearinghouse rejections can also be of benefit. Rejected claims waste time and reduce profitability. Tracking clearinghouse rejections allows you to identify common problems and work to reduce rejections in the future.
Insurer Analysis Report
Information about insurers can help you make important revenue decisions. Identifying which payers and insurance companies contribute the most to your revenue cycle can provide stability. In addition, an Insurer Analysis Report tracks your collection per Total Relative Value Unit, which provides you with information about your rates. Through knowledge gained in your reports, a negotiation for better pricing with payers and insurance companies is more likely to result in success.
The Collection per Total Relative Value Unit should be higher than the current Medicare Conversion Factor. If it’s lower, you may not be collecting sufficiently from patients. If some carriers are paying significantly less than average, you may be underpaid. Analyze carefully before dropping a carrier that underpays, you can save your practice thousands a year, but can also affect your revenue stream.
It is recommended that you run the Insurance Analysis report at least twice a week. When discrepancies between your insurers are identified early, they are more likely to be paid. For valuable resources and information regarding your EOY reports, contact us, Virtual OfficeWare Healthcare Solutions, today to make 2023 a financially fit new year!