How do I calculate my $PVA for my Chiropractic services and what can I do to improve this number?
Your $PVA ($ per visit average) can be calculating by measuring the total revenue (patient payments + insurance payments) received on claims for a period of time.
This is something your Chiropractic Billing Service Company can calculate on your behalf. For example, if you are measuring $PVA for the month of March, you would add the total revenue made on March’s claims and then divide that by the total number of patient visits – make sure to include ALL visits to get an accurate number. Let’s say a clinic saw 500 patient visits in March, and collected $17,500 on those claims. $17,500/500 = $35, so your $PVA would be $35 for the month of March.
Now that you know your $PVA, you may be looking to increase that number – here are some things to evaluate:
- What is my current potential $PVA?
To evaluate this, you’ll need to evaluate your maximum collection potential for claims during that same time period – if you are network provider, you can do this by evaluating your allowed amounts for the Chiropractic services rendered for those claims (i.e. if I didn’t have any denials and I collected all the patient responsibility at a rate of 100% success, what would that number be) and then divide by the total number of Chiropractic visits.
This will tell you if you made improvements to your current processes what your collection ceiling would be. All of this information should be readily available in your Chiropractic practice management system.
- Why is my actual $PVA much lower than my potential $PVA?
Dig into those claims you reviewed – are you providing additional discounts and reductions beyond what the insurers are allowing? Are you experiencing denials? Are patients being billed for their amounts due? Are you collecting time of service payments for cash patients or patients with known financial responsibilities?
Are you having issues with reconciling your accounts and knowing what to bill patients? If you are uncertain why you have a gap, work with your Chiropractic billing service company to answer these questions and get started on better processes to resolve these issues.
If you are experiencing denials, there are likely process issues hiding behind those denials that need to be addressed – determine the core reasons for denials and make sure you develop processes/flow-charts to train your staff on to help prevent those denials from occurring.
- Am I satisfied with my current potential $PVA?
If this number is less than your ideal $PVA, then you need to evaluate what changes you might need to make to your practice – this might mean increasing your cash prices, performing therapies/exercises to patients who would benefit from additional care, making changes to your insurance demographic (joining/leaving networks, marketing more for auto, etc.)
- Can I grow my practice to be more successful while keeping my existing potential $PVA?
You may need to consider what things you could do while keeping a “lower” $PVA that would add to the success of your practice – marketing, adding an open adjusting hour if you are normally turning down patients that can’t fit into your schedule, adding an associate, etc.
Measure your overhead and current capacity and see if there opportunities to increase revenue through without having to significantly adjust overhead. Think outside the box – do you have highly capable Chiropractic assistants who would be able to transition to marketing duties if billing activities were outsourced? Evaluate roles and responsibilities of your staff to determine where adjustments can be made to orient your team towards meeting your goals.
Simplify your Growing Chiropractic Clinic
Working with a Chiropractic Billing Service company can help to decrease overhead while growing your practice. Share goals that you have for growing your practice with your biller and ask that they help monitor these areas and share progress with you through targeted statistics.