What benchmark statistics are available to set key performance indicator goals for credit balances and undistributed payments for hospitals and physician practices?
Answer 1: I use the following: Credit-balance accounts receivable (A/R) days (gross) < A/R days.
This question was answered by: Caswell Samms, network CFO, Lincoln Medical Center and Harlem Hospital, Bronx, N.Y.
Answer 2: The benchmark I have always heard of and used is that the credit balances should be less than one day of net revenue. Anytime we have maintained under this limit, we have avoided unnecessary questions from our auditors.
This question was answered by: Kelly McGinnis, director of revenue cycle, HealthAlliance of the Hudson Valley, Kingston, N.Y., and is a member of HFMA’s Hudson Valley New York Chapter.
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