Cash flow and collections are essential for the success of any medical practice. However, many small medical practices don’t realize they have valuable data at their disposal that can be used to improve these processes.
By understanding your data, you can gain insights into your patients, your market, and your own practice performance. This information can then be used to create more effective cash flow and collections strategies.
Net Collection Ratios (NCRs)
One way to use data to improve cash flow is to track your net collection ratios (NCRs). NCRs measure the percentage of your invoices that are actually paid. By tracking your NCRs over time, you can identify trends and areas where you can improve.
What’s the lag time between Billing and Payment
Another way to use data to improve cash flow is to track the lag time between billing and payment. The lag time is the amount of time it takes for your patients to pay their invoices. By tracking the lag time, you can identify patients who are slow to pay and take steps to collect their payments more quickly.
Who is paying OOP vs Insurance
Finally, you can use data to improve cash flow by tracking your payer mix. The payer mix is the percentage of your business that is made up of different types of payers, such as insurance companies, self-pay patients, and government programs. By tracking your payer mix, you can identify payers who are more likely to pay their bills on time and take steps to market your services to those payers.
What about collections?
In addition to improving cash flow, data can also be used to improve collections. For example, you can use data to identify patients who are likely to be delinquent on their payments. You can then take steps to collect those payments before they become a problem.
You can also use data to improve your collections process by tracking the denial rates for your claims. Denial rates are the percentage of claims that are rejected by insurance companies. By tracking your denial rates, you can identify areas where you can improve your claims submission process.
By using data to improve cash flow and collections, you can help your small medical practice stay afloat and thrive.