How does Charge lag time effect the Medical Billing Process?
Capturing charges often overlooks patient visit duration. This “duration” or delay gap of time is known as Lag time.
In this article, we will be calculating average charges lag time and improving it.
Ideally, charges are billed within a day, but delays often occur. Charges lag time directly impacts billing and payments.
Calculation of Charge Lag time
Calculate lag time by subtracting service date from charge date.
Calculate lag time by subtracting service date from billing date.
Now, calculate average lag time by averaging the differences.
Calculating lag time estimates when charges should be submitted. Long lag times impact aging and delayed payments. Also, don’t forget about the additional days it added to the re-working of the claims overall.
What can be done to improve your lag-time?
Documentation in-real time
Document daily visits to improve lag time. EHR templates and dictation ease documentation.
Keep track of the gaps in-between
Setting a standard lag time helps identify delays.
Place charges in time
With in-time documentation it is also vital that your efforts don’t go to waste. Late charge submission despite timely documentation. This will bring back whole thing into a circle.
Reconciliation in time
A very important key-player is charges reconciliation. A slow reconciliation process can negatively impact your average lag time. Monitor billing to ensure timely charge submission.
In conclusion
Shorten lag time to improve charge lifespan. Recognizing its importance in RCM can prevent A/R inflation and delays.
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