MBC routinely performs above industry averages. Our average daily sales outstanding last year for all MBC clients combined was 31 days. That means that on average, our clients were paid within 31 days after the date of treatment. Routine and quick cash flow is important for all outpatient therapy practices. MBC has maintained this standard of performance year over year. To calculate your DSO use the formula below.
With a strong partnership between the clinic administrative staff and the billing office, the ability to collect over 98% of allowable amounts is easily within reach. Many of the MBC clients reach this mark every month. 30% of medical payments in today’s high deductible world are patient responsibility. A strong over the counter collection process is needed to maintain a high collection percentage. MBC Clients see a high collection percentage across the board and the average for all clients was above 95%.
To calculate your average collection percentage, use the formula below. Make sure that you are only using contractual adjustments and not other adjustments made for bad debt, adjustments for lack of authorizations, etc.