Collecting AR

Question 1

What is the primary responsibility of the billing office?

Answer 1

Collecting on balances.

Aug. 2021, 7.3

Question 2

Define collection ratios.

Answer 2

A ratio of payments to charges.

Aug. 2021, 7.4

Question 3

What are the two kinds of collection ratios?

Answer 3

• Gross
• Net

(Aug. 2021, 7.4)

Question 4

What is the gross collection ratio formula?

Answer 4

The sum of all payments (minus refunds)
÷
Total charges

(Aug. 2021, 7.4)

Question 5

What is the net collection ratio formula?

Answer 5

Sum of all payments (minus refunds)
÷
Total charges (minus contractual write-offs and self-pay discounts).

(Aug. 2021, 7.4)

Question 6

What does professional billing use to calculate collection ratios?

Answer 6

Sums of transactions

Aug. 2021, 7.4

Question 7

True or False:
The Epic-released PB Collection Ratio Summary Dashboard displays collection ratios grouped by payer and other summary levels.

Answer 7

True

Aug. 2021, 7.4

Question 8

How are HB collection ratios defined?

Answer 8

HB Collection Ratios =
Total amount of payments
÷
Total amount of charges on the HAR.

(Aug. 2021, 7.4)

Question 9

What happens when a write-off is performed?

Answer 9

The remaining balance of a charge or a bucket is lowered due to an adjustment.

(Aug. 2021, 7.5)

Question 10

WHERE is the primary write-off reason listed in PB?

Answer 10

On each charge.

Aug. 2021, 7.5

Question 11

WHERE is the primary write-off reason listed in HB?

Answer 11

On the hospital account.

Aug. 2021, 7.5

Question 12

List the write-offs expected by an organization:

Answer 12

• 1 - Contractual
• 2 - Self-pay discount/charity
• 3 - Other allowance

(Aug. 2021, 7.5)

Question 13

What category values indicate that your organization is not receiving money that was anticipated?

Answer 13

All of them except 1, 2, or 3.

Aug. 2021, 7.6

Question 14

Define expected allowed amount.

Answer 14

The amount your organization has calculated from the contract.

aka the expected amount or Epic allowed amount

(Aug. 2021, 7.7)

Question 15

Define allowed amount.

Answer 15

The amount the payer has calculated for reimbursement.

aka the payer allowed amount

(Aug. 2021, 7.7)

Question 16

What is the difference between the total billed amount and the allowed amount?

Answer 16

The not allowed amount.

Aug. 2021, 7.7

Question 17

Define paid amount.

Answer 17

What the payer has sent for reimbursement.

This is usually the same as or close to the allowed amount.

(Aug. 2021, 7.7)

Question 18

What is the difference between what your organization expected to receive and what you actually receive called?

Answer 18

The variance.

Aug. 2021, 7.7

Question 19

Variance = ? - ?

Answer 19

Variance = expected allowed amount - allowed amount

Aug. 2021, 7.8

Question 20

Why is it common to use absolute values when summing total variance?

Answer 20

So that there is no need to offset under and overpayments when grouping results.

(Aug. 2021, 7.8)

Question 21

Allowed amount = ? - ?

Answer 21

Allowed amount = total billed - not allowed

Aug. 2021, 7.8

Question 22

What is an organization’s most accurate estimate of what payments they actually expect to receive?

Answer 22

AR valuation

Aug. 2021, 7.10