Introducing the new Patient receivables modal in Revenue Diagnostics, a feature designed to enhance your ability to forecast cash flow by incorporating your patient collections model.
Overview
Traditionally, our customers have modeled their patient collections based on the amount marked as patient responsibility on remittances, applying a percentage forecast for collections over various time periods. For example, 40% collected within 30 days, another 30% within 60 days, and so on.
Previously, Revenue Diagnostics displayed the forecasted and actual patient responsibility as marked on remittances, effectively assuming a 100% collection rate from day zero. With the introduction of the Patient Receivables Modal, the system now incorporates the patient collections model described above. It's important to note that while Rivet does not have direct access to patient payments, the estimates provided are based on the modeled collections, offering a more realistic view of your financial outlook.
2. Getting Started
To begin utilizing the Patient Receivables Modal, click the corresponding button located at the top right of Revenue Diagnostics. A sidebar will open, prompting you to input your patient collection rates by time bucket. This initial step is crucial for tailoring the model to reflect your unique collection rates and forecasts.
3. Calculating Net Revenue
Once you’ve inputted your patient collection rate, it’s time to decide which option you want to use for calculated net revenue. Don’t worry, it’s easy to switch between the two options whenever you’d like. The two options for displaying patient collections are:
Total Patient Receivables: Patient receivables match exactly with what is marked as patient responsibility on remittances. This is true everywhere in Revenue Diagnostics, including actual and forecasted net revenue. Effectively, this treats patient responsibility as if 100% is paid on the same day the remittance is issued.
Expected Collections: Apply a patient collections model to patient responsibility. This affects how we calculate net revenue everywhere in Revenue Diagnostics.
Forecasted net revenue: The total expected collection rate is factored into the forecast, rather than forecasting that 100% of patient responsibility will eventually be collected.
Actual net revenue: The formula for actual net revenue = payer revenue + patient receivables expected as of today given collection rates inputted.
Regardless of which option you select, you will see three rows dealing with patient payments in the overview tab. The row being used to calculate net revenue will be bolded, while the other two rows will be faded.
The total patient receivables row shows exactly what was marked as patient responsibility on the remittance.
The total expected patient collections row shows how much patient responsibility is expected to be paid in total. It is calculated using the sum of the time buckets inputted in the patient receivables modal.
The expected patient collections as of today row show how much patient responsibility is expected to be paid by today using the collections model you inputted. Rivet assumes patient payments occur linearly, meaning that if you expect 50% of patient receivables to be paid between 0-30 days, on day 15 we expect that 25% of patient receivables have been paid.
If you have any additional questions about Patient Receivables in Revenue Diagnostics, feel free to chat in or send an email to support@rivethealth.com.
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