Ask the Experts: Up-Front Reserves
What is the industrywide uncollectable percentage for accounts receivable that hospitals can set aside as up-front reserves? In my past experience, it has been 3-5 percent.
Answer: The best way to calculate your up-front reserve is to look at your own collection experience. HFMA has MAP App data on bad debt write-offs for high-performing hospitals, but to be realistic and fit with your hospital’s payer and service mix, use your own experience.
This question was answered by: Ruth Landé, vice president, patient revenues, Memorial Sloan-Kettering Cancer Center, and is a member of HFMA’s Metropolitan New York Chapter.
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