Chiropractic is our Specialty. Your Cash Flow is our Priority

Practice Resources

Key Financial Indicators (Ratios)

Ratios are tools in financial analysis that help implement plans that improve profitability, liquidity and financial structure etc. Financial ratios are useful indicators of a firm's performance and financial situation. Ratios report mostly on past performances. They can be used to analyze trends and provide lead indications of potential problem areas. In some cases, ratio analysis can predict future bankruptcy.

Key ratios give a reliable indication of the competence and strengths and weaknesses of management.

Liquidity Ratios provide information about a firm's ability to meet its short-term financial obligations.

Financial Leverage Ratios provide an indication of the long-term solvency of the firm. Financial leverage ratios measure the extent to which the firm is using long term debt.

It is our sincerest hope that you will leverage these financial metrics to better understand and track the performance of your business. MedCom uses these data points to set collection objectives with our clients and measure results.

Net Collection Ratio = Total Collections/Net Charges

• The Net Collection Ratio equals Total Collections divided by Net Charges.
• This ratio measures the effectiveness of a doctor's billing system.

Total Accounts Receivable

• This is the value of all unpaid claims and patient balances.
• Ideally, Total Accounts Receivable should equal no more than 2 to 2½ months of outstanding production.

Total Months in Accounts Receivable

• Total Months in Accounts Receivable is an Accounts Receivable Ratio calculated by dividing Current Accounts Receivable by Average Monthly Gross Charges.
• This ratio measures how fast outstanding accounts are being paid.
• An accurate snapshot of Total Months in Accounts Receivable helps you predict cash flow and plan spending accordingly.

Service Aging Report

The Service Aging Report is a diagnostic tool MedCom uses to help Chiropractors track accounts that are past due and require special attention. This report prevents receivables from remaining unpaid too long. It is an excellent loss-prevention resource.

Practice Analysis Report

• This is a diagnostic tool MedCom uses to show Chiropractors their procedure production.
• The report lets doctors know where most charges are being initiated.
• It helps determine the ranking of services and products as a percentage of overall reimbursements.
• For practices with more than one doctor, the Practice Analysis Report analyzes charges and services generated by individual physicians in the group.