Outsourced Chiropractic Billing Service Performance Benchmark - October 2006
October Billing Performance Index (BPI) outperformed September value by 23%, replacing one participant in the list of top ten performers and raising the index from 21.9 up to 17.8. This article describes a fifth iteration of a prototype for a rule-based chiropractic billing index, including its coverage definition, update cycle, volume weighting, and provided information.
BPI = 17.8 means that the average of ten top performing payers working with BillingPrecision.com clients have 17.8% of Accounts Receivable beyond 120 days. BPI is a key billing performance characteristic, as it is a proxy of the claims that are never paid. Obviously, the lower is the index the better is billing performance. The table below also lists the top ten performing payers and their relative index as recorded in Billing Precision's system.
- Billing Precision Index 17.8
- Horizon 3.7 (up from 9.5 in September)
- Blue Cross Blue Shield Wisconsin 6.9
- Blue Cross Blue Shield Illinois 7.1 (up from 14.8 in September)
- Medicare New Jersey 10.8 (up from 13.2 in September)
- United Health Care 11.7 (down from 9.7 in September)
- Cigna 12.2 (up from 18 in September)
- Blue Cross Blue Shield New Jersey 17.7 (up from 22.5 in September)
- Medicare Wisconsin 19.2 (up from 23.4 in September)
- Aetna 20.1 (down from 19.8 in September)
- Blue Cross Blue Shield Florida 44.6 (up from 55.5 in September)
Dropped participant from September BPI:
Improved participants with respect to September BPI:
- Horizon 3.7 (up from 9.5 in September)
- Blue Cross Blue Shield Illinois 7.1 (up from 14.8 in September)
- Medicare New Jersey 10.8 (up from 13.2 in September)
- Blue Cross Blue Shield New Jersey 17.7 (up from 22.5 in September)
- Medicare Wisconsin 19.2 (up from 23.4 in September)
- Blue Cross Blue Shield Florida 44.6 (up from 55.5 in September)
Underperforming participant with respect to September BPI:
- United Health Care 11.7 (down from 9.7 in September)
New participant with respect to September BPI:
- Blue Cross Blue Shield Wisconsin 6.9
Coverage
BPI is rule-based, i.e., payer participation in the index is defined by dynamically rules at the time of computation and not by a static listing of specific payers. Therefore, any specific payer may start or discontinue participation in the index, dependent on satisfaction of rule's conditions.
Current selection of payers for participation in the BPI is based on fifty top-volume providers across all United States that have received Billing Precision services for more than six months and have more than two hundred claims in their current Accounts Receivable.
Update Cycle
BillingPrecision.com updates BPI on a monthly basis.
Volume Weighting
BPI is volume weighted, which is important to accommodate future growth of provided information, index combinations, and sensitivity across multiple indices.
Information Provided
BPI computes the percent of Accounts Receivable beyond 120 days. Note that national average across all medical specialties of percent of accounts receivable beyond 120 days is 17.7%.
Summary
Medical Billing Performance Index helps the development of billing industry standards. Medical service providers can use the index to benchmark their billing performance and to guide its improvement over time. Rule-based index definition allows for automated inclusion and exclusion of payers in the index based on payer attributes, such as numbers of processed claims, accounts receivable distribution, certain mix of CPT codes, or patient demographics. Relative payer index provides billing process improvement direction.
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