Lab Billing Analysis: What to expect from your Medical Billing Partners?
Efficient billing is key for financial stability and revenue in a US clinical lab. Partner billing analysis enhances transparency, identifies areas for improvement, and boosts financial performance. This post covers key aspects of a 6-month lab billing analysis with partners.
Days in Accounts Receivable (AR)
Assessing payment collection time is a key aspect of lab billing analysis. Your medical billing partners should provide you with a detailed analysis of Days in AR. Payment collection time indicates billing efficiency and identifies issues needing attention
AR Buckets
Lab billing analysis should assess accounts receivable by age. Partners should provide AR buckets to identify aging accounts and improve follow-up & collections. This approach helps optimize revenue and maintain a healthy cash flow.
Denial Categories
Understanding the reasons for claim rejections is crucial for effective revenue cycle management. Partners should analyze denial categories and provide denial reason breakdowns. Denial breakdowns empower addressing front-end, back-end, & coding denials to reduce denials & improve revenue
By Test Analysis i.e Best and Low Performing CPTs
Lab billing analysis should evaluate CPT code performance. Partners should detail high and low-performing CPT codes based on volume and revenue. The analysis identifies revenue-contributing tests and areas needing attention or adjustments. It aids in making informed decisions on resource allocation and revenue optimization strategies.
Cost per Test/Profitability per Test
To ensure viability, understanding cost and profitability per test is crucial. Partners should analyze test costs vs. revenue. The assessment reveals test profitability for pricing and resource decisions.
Partner billing analysis is essential for financial stability & revenue optimization in clinical labs. A 6-month billing report offers insights on AR, denials, CPT codes, & test profitability.
How can you Maximize Reimbursements and Streamline your Clinical Lab's Financial Operations with AltuMED? Find it out in the video.
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