Nov 5, 2010 – Preventive medicine is an important part of good healthcare. The old saying of an ounce of prevention is worth a pound of cure really does contain truth. Not only should patients be encouraged to follow a good preventive health schedule but it is also important for the practice to follow some sound preventive measures for maintaining financial stability. A healthy practice should routinely have a pay mix and fee schedule examination as can be provided by medical billing service companies.
Payor mix should be carefully considered when starting up a practice. Payor mix changes are difficult to accomplish once patients are established. A healthy payor mix will be one that optimizes payment while servicing patients with a variety of payors. Private insurance payors that pay 100% of billed charges would be great for the entire practice but more than likely there are not enough of these types of patients in your service area to sustain a full time practice. Variety in payor mix provides the best opportunity for a full practice and will also assure that all payor classes in the community have access to healthcare.