AR COLLECTION REPORT

Gross Charges - Total revenue billed in a given month

Adjustments - Include insurance contractual allowances and other write-offs 
such as indigent and bad debt

Payments - Include any cash received from insurance companies and patients

Monthly Census - Patients treated per month (since radiation involves 
reoccurring treatments, most facilities define this field as patients treated per day [accelerator(s) daily patient count])

Monthly Expenses - Include all expenses incurred by the facility (payroll, 
employee benefits, supplies, etc.). Note: Including Bad Debt as an 
adjustment or an expense will determine whether you include Bad Debt in the 
adjustment line or monthly expense line.

Revenue AR Days - This is an indicator of how efficiently a facility is turning around claims (average number of payment days per claim). The basic formula for Revenue Days is three months' total revenue divided by the number of actual days in the three-month period. That number is divided into the latest total accounts receivable (AR) days. 

The objective is to keep the payment trend line above your expenses line. Like a checkbook, if you are spending more money than you are making, you are in the red.