Healthcare practice operations
Practice adjusted collection rate
Compare matched collections with charges after supplied approved contractual adjustments.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
adjusted collection rate = (payments - refunds)/(charges - approved contractual adjustments) ×100
Match collections and adjustments to the same charge cohort, rather than mixing unrelated current cash and older charges. Do not include discretionary bad-debt write-offs as contractual adjustments. This does not recommend billing codes, payer rates, debt collection or clinical services. Negative balance or a rate over100%requires reconciliation. Use your own records for the same scope and period. Example figures are illustrative, not industry benchmarks. Results exclude income taxes and any cost you have not entered. Check the result before pricing work or committing resources.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Charges for the cohort being evaluated (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Approved contractual adjustments for those charges (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Payments applied to those charges (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
- Refunds or payment credits against those payments (selected currency): Use a supplier quote, invoice, payroll record or allocated cost for the exact job or period named here. Include this amount only once.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Adjusted collection rate is 91.43 % for the illustrative inputs below.
Example inputs
- Charges for the cohort being evaluated: $100,000.00
- Approved contractual adjustments for those charges: $30,000.00
- Payments applied to those charges: $65,000.00
- Refunds or payment credits against those payments: $1,000.00
- Adjusted collection rate
- 91.43 %
- Net matched payments
- $64,000.00
- Charges after contractual adjustments
- $70,000.00
- Uncollected adjusted balance
- $6,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare matched collections with charges after supplied approved contractual adjustments. Inputs come from your own records and stated assumptions; no rates or legal limits are looked up.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.