Medical Practice Management
Jun 19

Charges v write offs each month

Some people have a hard time calculating the percentage for net collections because write-offs are sometimes higher than the charges for any given month. This is a timing issue because the EOB doesn’t arrive in the office sometimes until 60-90 days after the charge is billed.

This is why you should always use the “average” line to analyze your gross and net collection percentages. Calculating the percentages based on the YTD average for charges and write offs “evens out” the timing issue mentioned above.

About Reed Tinsley, CPA

As a top advisor to physicians, I help increase practice profits by delivering hands-on, expert medical accounting/tax support, practice counsel, and revenue-building strategies. Read more →