Net Collections Ratio

The net collection rate is an essential medical billing metric to measure the ability of your practice to collect the money it is owed. By understanding the net collection rate, you will have a better grasp on how effective you are in collecting money owed to your practice. Water Control Software. This easy to calculate metric will provide useful insight into how your practice is truly performing. Gowin Deluxe 2011 Serial Port. For our latest post, we will review what makes up the net collection rate and how this metric affects your practice so that you can better manage your operations. The adjusted (or net) collection rate is a measure of a practice’s effectiveness in collecting reimbursement dollars. As an effective benchmark of your practice’s financial health, it represents the percentage of reimbursement achieved out of the reimbursement allowed based on contractual obligations with payers. Practices calculate their net collection rate to see how much revenue is lost due to factors such as uncollectible debt, untimely filing, and other non-contractual adjustments.