What does BHR mean in HEALTHCARE
BHR stands for Balanced Healthcare Receivables. It is a financial metric used in the healthcare industry to assess the efficiency of a healthcare provider in collecting revenue from patients and insurance companies.
BHR meaning in Healthcare in Medical
BHR mostly used in an acronym Healthcare in Category Medical that means Balanced Healthcare Receivables
Shorthand: BHR,
Full Form: Balanced Healthcare Receivables
For more information of "Balanced Healthcare Receivables", see the section below.
» Medical » Healthcare
Definition
BHR is calculated as follows:
- BHR = Total Accounts Receivable - Total Bad Debt Expense - Total Contractual Adjustments
Total Accounts Receivable: The total amount owed to the healthcare provider by patients and insurance companies for services rendered but not yet collected.
Total Bad Debt Expense: The total amount of revenue that the healthcare provider expects to not collect due to patients' inability to pay or other factors.
Total Contractual Adjustments: The total amount of revenue that the healthcare provider has agreed to write off due to contractual agreements with insurance companies or other third-party payers.
Importance
BHR is an important metric because it provides insights into:
- Revenue collection efficiency: A high BHR indicates that the healthcare provider is effectively collecting revenue from patients and insurance companies.
- Financial stability: A low BHR can indicate financial challenges for the healthcare provider, as it may not be able to collect enough revenue to cover its expenses.
- Billing and collection practices: BHR can help identify areas for improvement in billing and collection processes, such as streamlining paperwork or reducing errors.
Essential Questions and Answers on Balanced Healthcare Receivables in "MEDICAL»HEALTHCARE"
What is Balanced Healthcare Receivables (BHR)?
Balanced Healthcare Receivables (BHR) is a financial metric used in healthcare to assess a provider's ability to collect outstanding payments from patients and insurance companies. It represents the amount of net patient service revenue that is expected to be collected within a specific time frame, typically 120 days.
How is BHR calculated?
BHR is calculated by subtracting the following amounts from the provider's gross patient service revenue:
- Allowances for uncollectible accounts
- Patient and insurance company payments received after the 120-day period
The resulting figure represents the net patient service revenue that is expected to be collected within the 120-day time frame.
Why is BHR important?
BHR is important because it provides insights into a healthcare provider's financial health and cash flow. A high BHR indicates that the provider is effectively collecting payments and maintaining financial stability. Conversely, a low BHR can signal potential financial challenges and the need for improvements in revenue cycle management.
What are the factors that affect BHR?
Factors that can affect BHR include:
- Billing accuracy
- Insurance claim processing timeframes
- Patient payment behavior
- The effectiveness of the provider's revenue cycle management system
- Changes in healthcare regulations and policies
How can healthcare providers improve BHR?
Healthcare providers can improve BHR by implementing strategies such as:
- Automating billing and insurance claim submission processes
- Streamlining patient payment processes
- Offering flexible payment options
- Regularly reviewing and updating billing and collection policies
- Monitoring key performance indicators and making necessary adjustments
Final Words: BHR is a valuable metric for healthcare providers to monitor their financial performance and identify opportunities for improvement. A well-managed BHR can contribute to increased revenue, improved cash flow, and overall financial stability.
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