What is the industrywide uncollectable percentage for accounts receivable that hospitals can set aside as up-front reserves?
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.
|What do you think? Please share your thoughts on this question in the comments section below.|
The information provided through the Forum’s Ask the Expert service does not constitute legal advice, even when the advice is provided by lawyers. You need to obtain your own legal counsel for legal advice and consider the laws and regulations that govern your state. The content and opinions expressed are those of the Forum experts, and not that of their employers or of HFMA. HFMA does not endorse the material or warrant or guarantee its accuracy. The responses are based only on the specific facts or circumstances provided. Forum experts cannot be held liable for outcomes related to any information provided.
Pose another question to our Revenue Cycle Forum experts.