Cash Flow Report
The Cash Flow "waterfall" Report is a valuable tool to visualize how money flows through the Practice.
- It is a simple report to run and offers detail about the practice's financial health.
- It contains KPIs of Gross and Net Collections and exposes delays in Charges and the flow of Payments over time.
- For the selected time span, you will see all posted transactions against the Date of Service month.
Specific Metrics Revealed by the Cash Flow Report
- Time to Bill: View the Charges from left to right for a given month
- If more than a day or two of Charges are being posted in a different month than the DOS month, there is a breakdown in the process.
- Time to Collect: View Payments from left to right for a given month
- The further to the right you have to go to resolve balances the less you are able to collect in a timely manner.
- Calculates remaining A/R for the Date of Service month.
Access the Cash Flow Report
(Reports > A/R panel > Cash Flow)
- Select Reports on the left menu.
- Select Cash Flow under the A/R panel.
- Complete the applicable Report fields.
- Select the Time Span
- Select the Start Month
- Enter the Start Year
- Dates at the top are Posted Dates.
- Dates down the side are Dates of Service (DOS).
- Select Run [F2].
Self Pay Charges
- To run the Cash Flow Report for only Self Pay Charges:
- Enter Patient in the Insurance Filter.
- Select Only for the Self Pay dropdown.
- To include Self Pay Charges:
- Enter Patient (and any Insurances) in the Insurance Filter.
- Select Include in the Self Pay dropdown.
- To exclude Self Pay Charges:
- Select Exclude in the Self Pay dropdown.
Report Metrics Example
- Month 2020-01 on the side; Jan-20 Column
- Charges = Charges Posted in January with a January DOS
- Adjustments = Adjustments Posted in January with a January DOS
- Payments = Payments Posted in January with a January DOS
- Month 2020-01 on the side; Feb-19 Column
- Charges = Charges Posted in February with a January DOS
- Payments = Payments Posted in February with a January DOS
- Totals: Sum of all data to the left of the Totals Column
- Posted After: Sum of all data that was posted after the dates represented on the report
- Example:
- The report is run on June 1, 2021 for Jan-Dec 2020.
- The Totals column shows everything that was posted in 2020.
- If there was money posted in Jan-May of 2021 against DOS in 2020, this would be shown in the Posted After column. "What money was Posted After the dates represented on the report?"
- By including the Posted After money, Net Collection calculations account for all money that has been posted.
- Gross Collections
- Totals + Posted After / Total Charges (x 100 for percentage).
- Net Collections: Industry standard metric for describing "of the money that was collectible (allowed amounts) what % was collected?"
- While 100% is not achievable, the goal is to be as close to that percentage as possible.
- Total + Posted After (Adjustments, Payments, Write-Offs, Transfers, Refunds) / Total Charges (x 100 for percentage).
OR
- Total Charges - Remaining A/R / Total Charges (x 100 for percentage).
Example of Charges
- Goal met: $100,000 of Charges with DOS in January were posted in January and all were billed in January.
- Goal not met: If a significant amount of January charges show in February or after, the Charges are not getting from the Provider to the Payer on time.
Example of Payments
- Goal met: Some Payments may reflect in January with more in February and March.
- In April and beyond, the Payments should be tapering off.
- Goal not met: If many of the Payments are posted too far from the DOS, it is reflected in lower Net Collections percentages.