Here are five observations on the importance of the in-office collection ratio for orthopedic practices from the American Association of Orthopaedic Executives.
1. The large increase in patient deductibles means practices are collective more of the bill from patients compared to other years, so collecting upfront at the time of services is important.
2. Tracking the in-office ratio on a regular basis is important to ensure policies and protocols are followed. Data collection can be used to make daily, weekly and monthly calculations so practices know their billing is on track.
3. Practices can find the in-office ratio by calculating the total charges generated in the office and the money collected at the reception desk each day and then dividing the amount collected into the total charges for any given period.
4. The in-office collection ratio for most practices is 50 percent. It’s easier to calculate the percentage of credit extended to all patients, according to the report. Subtract the charges payable by major carriers before doing the calculation.
5. Share the ratio with the receptionist and other assistants who are responsible for its success.