AAFP members can ask a question at the Practice Management Help Desk.
Asia Blunt, MBA, CPC
Practice Management Strategist
In just six minutes, you can learn how to calculate your practice’s net adjusted collection rate. After watching this presentation, you will know how to:
The adjusted collection rate represents the percentage of reimbursement collected from the total amount allowed based on contractual agreements and other payments, i.e., what you collected versus what you could have/should have collected. This metric shows how much revenue is lost due to factors in the revenue cycle such as uncollectible bad debt, untimely filing, and other noncontractual adjustments.
Best Practice Tips
To calculate the adjusted collection rate, divide payments (net of credits) by charges (net of approved contractual agreements) for the selected time frame and multiply by 100.
One of the most common mistakes when posting payments is applying inappropriate adjustments to charges.
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Adjusted Collection Rate