Key Takeaways
- Many speech therapy clinics do not benchmark their billing practices against industry standards.
- Billing practices in speech therapy can significantly impact overall revenue, but the numbers alone don’t tell the whole story.
- Understanding what services are included in billing is crucial for evaluating costs.
- A lower billing percentage may still lead to higher overall costs if collections are not effectively managed.
This gap in understanding is more significant than it appears. Billing is a major operational expense that directly correlates with revenue performance, yet it often receives less scrutiny than staffing or equipment costs.
If you haven’t assessed your billing practices in the last 12–18 months, you may not have a clear answer to a critical question: Are you overspending on billing?
Table of Contents
Evaluating Speech Therapy Billing Practices
Understanding Service Inclusions
- Submit claims to payers
- Process remittance files
- Post payments into the system
- Following up on unpaid claims
- Identifying and correcting denials
- Managing aging accounts receivable
- Ensuring secondary claims are processed
- Collecting patient balances
Factors Influencing Billing Costs
Several key factors shape billing costs.
Second is the technology used. Billing services that are well-integrated with electronic health records can reduce errors, enhance visibility, and streamline workflows. These efficiencies often lead to better financial outcomes but can also affect pricing.
The Risks of Choosing Low-Cost Billing
However, billing does not function in isolation; it directly impacts the actual revenue your practice collects.
When claims are submitted quickly but not followed up on, the consequences include:
- Increased denial rates
- More aging accounts receivable
- Lower net collections
Assessing Your Current Billing Practices
Rather than focusing solely on rates, consider evaluating these key indicators:
- Net collection rate
- Denial rate and recovery rate
- Accounts receivable aging (especially over 90 days)
- Time from service to payment
- Visibility into billing performance
If your billing rate is low but your collections are inconsistent, the actual cost may be higher than it appears. Conversely, if your rate is higher but your collections are strong and predictable, the value may justify the expense. SpeechTherapy-Cloud offers a balanced approach with competitive billing rates and superior performance, resulting in better collections and fewer denials.
When to Reevaluate Your Speech Therapy Billing Practices
A more proactive strategy is to periodically benchmark:
- Your billing practices against industry standards
- Your performance against best practices
- Your visibility compared to what modern systems can provide
Even a brief review can reveal gaps that were previously unnoticed.
Evaluate your current billing practices to see how your rates and results compare to a comprehensive service model.
