Question

1. Read the following scenario:

As the practice administrator, your monthly meeting with the managing physician partner and the billing manager is taking place.

The billing manager has reviewed the accounts receivable report and points out that the days in accounts receivable are 25 days, and that the total percentage of accounts older than 60 days is less than 10%.

“I would like to point out that our billing department is doing an excellent job, as evidenced by our days in AR number, and our excellent aging report”, says the billing manager.

The managing partner disagrees. “There are problems here that the AR report does not show”, he says. “I know we are seeing more patients, but our total collections are down.”

“I respectfully disagree. The days in AR and the aging report tell it all,” says the billing manager.

There is obviously disagreement between the two, and you have determined that you must determine if indeed there is a problem, and how you would fix it.

2. Based on your knowledge of the revenue cycle, how would you tackle this disagreement, and what would be your approach for a conclusion to present to both parties at a special meeting you will be holding with them next week?

Answer 1

ANSWER:

The list of choices I have to settle the disagreement:

1) Is to reverify the data presented by billing manager by manually verifying the data's calculation.

2) checking of AR that is average amount of account receivables within period of 25 days can be done as managing partner has issue with this data.

3) After doing my homework I can put a clear perspective about the data's presented for 60 days by consulting accounts member too.

4) Calculation of average collection period by taking into accounts below parameter will help in the clear perspective for the above dispute:

Average calculation period = Total amount of days in period * AR (average amount of account receivables)/ Total amount of net credit sales within the period.

5) The above data will help me to settle the disputes as it can bring differences in team and by verifying the above points will help me to keep everyone on the same page and maintain the unity in team.