Physical Therapy Billing Companies And Your Accounts Receivable

Physical therapy billing companies deal every day with accounts receivable.

Accounts receivable is used throughout the medical billing industry and unfortunately it is most often misunderstood. Accounts receivable as they appear to physical therapy billing companies is defined generally as the total amount of monetary claims billed out that remain outstanding by the insurance company or the patient. Accounts receivable are broken down by time frames from the original date of service. The typical accounts receivable time frames range from zero to 30 days, 30 to 60 days, 60 to 90 days, 90 to 120 days, then finally 120 days and over.

Physical therapy billing companies have one primary objective and that is to gain payment for services as soon as possible. The sooner a provider can obtain payment for their services the sooner the payments can be invested into the company to pay employees and other incidentals, like equipment purchases and the payment of rent and utilities. The sooner physical therapy billing companies obtain payment, the sooner their billing clients can use the money collected to make more money. Every period that goes by allows the insurance companies to gain interest and benefit from this money when it could be going to the benefit of a physical therapy business.

Te longer accounts receivable remain outstanding through the physical therapy billing companies, the less money makes it back to the physical therapy practice and therefore the less beneficial it is for the practice. When physical therapy billing companies set goals as they pertain to accounts receivable they should set out the percentage of outstanding money in the different ranges. The highest percentage should conceivably be within the zero to 30 day range and the trend should be down as time goes on. The goal to shoot for is zero to 30 days: 40%; 31 to 60 days: 25%; 61 to 90 days: 20%; and over 91 days: 15%.

Physical therapy billing companies should provide their clients with exemplary customer service in addition to expediency in collections. The account representatives handling the accounts receivable should understand but be firm with those they collect from. People are people, but this is still a business and physical therapy billing companies should keep this in mind as they collect. Collections should be made as soon as possible but within reason for the customers to provide the right information and compensation for the services rendered.

Share

Leave A Reply (No comments So Far)

No comments yet

 
Name:
Email:



FRIEND / FOLLOW ME

AUTOMATED PATIENT REFERRALS!

MOBILE, EMAIL, VOICE APPOINTMENT REMINDERS

FREE BOOK “10 LAWS OF MOBILE PATIENT MARKETING”

Share