How To Calculate Net Patient Revenue In The Healthcare Industry

Net patient revenue has become a new standard for measuring the financial performance of hospitals and healthcare systems. With this formula, you can calculate the amount of money you have coming in before expenses are taken out to see your bottom line profit margin. Net patient revenue takes into account private insurance payments or self-payments that patients make on top of their co-pays after insurance pays its share. 

Please, keep reading to understand how beneficial it is for medical accountants to manage the net patient revenue margin in the healthcare industry.

The Importance Of Net Patient Revenue

Formula:  NTP(total amount of income) = Allowance for contractual amounts + Charity care + bad debt - patient care and services

The importance of net patient revenue  to a healthcare provider is an important factor of the success. When it comes to hospitals, they are mostly concerned with two things: patient volume and net revenue per visit or admission. If you want your hospital to thrive in today’s environment, then these metrics must be tracked closely by medical accountants.

The Importance Of Accountants In The Healthcare Industry

Healthcare organizations are complex businesses with a variety of financial and accounting needs. An accountant can help ensure the financial health of a healthcare organization by performing tasks such as preparing and analyzing budgets, managing accounts payable and receivable, and auditing financial records.

Some of the main benefits of professional accounting services in the healthcare industry:

• Medical accounting professionals have the expertise to manage payment collection processes. 
• They ensure there is a budget to manage all supplies and funds.
• They make processes easier and maintain financial records.
• Will avoid and prevent financial discrepancies from happening.
• Medical accountants provide valuable insights into how to improve the overall efficiency and profitability of a healthcare organization.

Hire Efficient And Professional Accounting Services In Los Angeles

Accounting is important medical practice in order to keep track of all the income and expenses that are coming through your business. You can be much more financially stable if  you have accurate records that will help you learn what works well for your patients, what services are in demand, and how to keep your finances healthy.

If you’re interested in working with efficient and professional accountants that can help you with your healthcare facility’s finances, contact Roberts Accounting. We’re ready to make your life easier!