Have you taken a good hard look at what your current billing service has done for you lately? Are they aggressively pursuing late payments from insurance payers? Or do you get the feeling that they’re only going after the easy money?
How can you know for sure? First, look at a key set of metrics. What percentage of your A/R is over 90 days? In most states, your A/R shouldn’t be over 45 days, unless you’re dealing with a lot of litigated cases. In fact, your payers should compensate you within 30-38 days if your billing service is really on top of things.
When your physical therapy billing service provides you with a financial report two weeks after your books have closed each month, examine the percentage of your outstanding A/R. Your report may or may not include this figure since it so candidly reveals the billing service’s overall effectiveness. If not, you can still calculate this figure on your own using a simple formula.
Next, look at what motivates your billing service. How are they being compensated? If your billing service is paid a flat fee or a fixed rate per patient visit, then they may not be motivated to go after those more challenging payments. The increased time and effort will reduce its overall profitability.
There’s no doubt about it. You could be doing a lot better. At BMS Practice Solutions, we don’t get paid until our clients get paid. We are highly incentivized to collect as much money as possible on your behalf – in the shortest time possible. And with our RevFlow technology, you can see exactly where your outstanding A/R percentages stand as well a number of other essential PT and OT practice metrics 24/7. We are accountable to you at all times. Remember, outsourcing can only work if a company is really willing to work for you.