Medical billing agencies are considered specialists in managing the finances of the typical doctor's office due to the special tools they use. Benchmarking is a process of defining AR standards against which your current collection performance can be measured. Determining benchmarks and how your practice measures up is a strong managerial tool that helps refine your Revenue Cycle Management (RCM).

If you are curious about how your office stacks up against the average clinic, let Advanced Medical Practice Management analyze your statistics. This is the first step to finally collecting the money you are owed.

Our most current benchmarking results are documented on our Blog.

Advanced Medical Practice Management uses two important AR benchmarks: Percentage of AR over 90 Days and Average Days in AR. While varying geographic location and payer mix affect these averages, it is widely accepted that most single specialty organizations should have an average of 37 days in AR and no more than 15% in AR over 90 days, and that multispecialty organizations that include Ortho and Pain Management should have an average of 47 days in AR and no more than 20% AR over 90 days.

Unfortunately, according to the Medical Group Management Association, less than 20% of all practices and ASCs meet the criteria that would define their performance as a successful practice in terms of Accounts Receivables. In most cases, doctors do not even know these numbers because they are not provided the comprehensive reports that reflect the true status of their practice as medical billing agencies can. Advanced Medical Practice Management's monthly reports show detailed financial activity of your practice as well as its trends.

Further, the Benchmarks set and reports provided by Advanced Medical Practice Management can become an integral part of Revenue Cycle Management (RCM) as it sets goals for your company. When goals are not attained, sound RCM practices require that the entire revenue cycle be reviewed. This means reviewing procedures from the day an appointment is booked to the time final payment is received. It includes verifying patients' eligibility, proper reporting and documentation, the entire billing process, and insurance reimbursements. Our comprehensive reports will determine where RCM needs to be focused.

Gross and Net Collection percentages are two additional tools of the RCM. While Gross Collection Percentage can only be compared to your own practice's historical performance, it is a strong indicator of a reduced insurance fee schedule and whether contract renegotiation is in order. Net Collection Percentage will give you an idea of how much of your AR is being written off as bad debt. Going one step further, Monthly Transaction Reports will show you where within your organization procedural changes are needed. Detailed reports on bad debt write offs will show you if you need improvement in verification of benefits or insurance requirements, in obtaining referrals and ABNs, in documentation for procedures or in the billing process.

Not all medical billing agencies are able to provide you with constant updates so you know what to change to increase your income. Contact Advanced Medical Practice Management today to take advantage of our benchmarking and monitoring abilities.