Revenue Care MD

Email Address

info@revenuecaremd.com

Phone Number

+1 (254) 268-1617

Our Location

Austin, TX 78731, USA

The Hidden Math: How a 5% Increase in Collections Can Change Your Practice Forever

Revenue Cycle Management
increase in collections

Most doctors think growth comes from seeing more patients, expanding services, or adding new staff. But here’s the hidden truth: a small improvement in your collections rate—just 5%—can completely transform your bottom line.

The Math That Most Practices Miss

Let’s break it down:

  • Suppose your practice generates $1,000,000 annually in charges.
  • With a typical collection rate of 85%, you’re only taking home $850,000.
  • Now, if you simply increase collections to 90% (just a 5% improvement), that’s an extra $50,000 in revenue—without seeing a single new patient.

 

And for many practices, the numbers are much larger. Across multiple years, that 5% compounds into hundreds of thousands of dollars lost or gained.

Why Are You Losing That 5%?

  • Denied claims that go unappealed
  • Coding errors and missed modifiers
  • Underpayments from insurance companies
  • Patient balances not being followed up on
  • Slow billing processes that push claims past timely filing limits

The Cost of Ignoring It

Here’s the kicker: most practices are blind to these leaks. If you’re not actively tracking your collection rate vs. industry benchmarks, you might be bleeding money without ever realizing it.

Imagine hiring another doctor, doubling your marketing, or expanding your office—only to still lose tens of thousands because of a 5% gap in collections.

The Easy Fix

Revenue optimization doesn’t require working harder. It requires working smarter:

  • Proactive denial management
  • Accurate coding audits
  • Aggressive underpayment recovery
  • Patient-friendly billing systems

 

By tightening your revenue cycle management (RCM), that “hidden 5%” becomes the easiest money you’ll ever make.

Frequently Asked Questions

Even a small bump in collection rates can add tens of thousands in revenue without adding new patients.

Most practices collect around 85% of charges, leaving significant revenue uncollected.

Denied claims, coding errors, underpayments, patient balances, and slow billing processes.

If not appealed quickly, denials directly reduce collections and can cause permanent revenue loss.

Yes, many practices miss them without regular audits and payer contract reviews.

Improve denial management, perform coding audits, track underpayments, and optimize billing systems.

By automating claim follow-ups, ensuring compliance, and providing transparency in reporting.

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