Common Terms used in financial:
Charges:
This is the total value the amount billed for all tickets entered during the period.
Charge Adjustment:
Charge adjustment in simple terms means adjustment to the charge amount billed. In certain circumstances, the doctors may give allowance to certain patients either because they are his/her colleagues in the hospital or relatives or relatives of his colleagues or may be friends. The doctor makes a decision to waive his fees. This is called professional courtesy. This is removed from the books by way of an adjustment. This may be a part of the amount billed or even the entire billed amount. The amount shown in the financials is the total value of such charge adjustments made during the period.
Insurance write off:
As explained in one of the sections earlier, insurance may not allow the entire amount billed by the provider. The difference between the amount allowed and the amount billed is the write off. This amount is reduced from the books. The amount shown in the financials is the total value of such insurance write off made during the period
Net Charges:
Charges – Charge Adjustment – Insurance write off.
Balance Transfer:
This is a term used when you transfer a patient to collections. When you perform this activity, you transfer the balance in the existing patient account to the collection account. This process is called balance transfer. The amount shown in the financials is the total value of such balance transfers made during the period.
Personal Receipts:
This gives the total amount of cash received from patients during the period.
Insurance Receipts:
This gives the total amount of cash received from insurance carriers during the period.
Receipt Adjustments:
Receipt adjustment in simple terms means adjustment to the receipt amount. This gives the total value of receipt adjustments made during the period.
Net Receipts:
Personal Receipts + Insurance Receipts – Receipt Adjustments
Change in A/R:
Net Charges + Balance Transfers – Net Receipts.
Gross AR:
This figure gives the total amount outstanding as on date from insurance and patients.
Net Revenue:
Gross Charges for the period x Expected %
Net AR:
Net Revenue – Net Receipts.
Average Charges:
Gross charges for past three months/3.
AR Days:
This shows the number of days of charges still outstanding in books. This is calculated as: Gross AR/Average Charges x 30.
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Account receivable common terms
