Illustrative modelHealthcare revenue · Relevant to FP&A

Revenue by billing code

Every service a medical practice bills carries a standard billing code, and each code pays its own amount. This build uses an invented remote care company and invented, rounded rates. Change the mix of programs, the days of readings and the minutes of staff time, and watch which codes bill, what each patient earns in a month and how much of it reaches the company.

What this shows

  • Which codes bill for a patient in a month, and why two of them can never bill together
  • Revenue per patient by program and by code, side by side
  • The mix of public, commercial and patient-paid bills, and what is collected after denials
  • The company's service fee as a share of what the practice collects

How I use it

  • Estimating what a new patient is worth per month before a contract is signed
  • Seeing which code carries the revenue and what happens if it is paid less
  • Checking that a billing rule is not being counted twice

Explore the model below. It uses an invented company and invented numbers.

Explore the model

Illustrative model · Synthetic data

Wide tables scroll sideways: swipe inside a table to see every column.

Sample build: revenue by billing code for an invented remote care company

Fernhollow Remote Care is an invented company that runs remote monitoring and chronic care programs for medical practices. The practice bills each patient each month, and Fernhollow earns a service fee on the cash the practice collects. Set up one patient's month, pick the mix of programs and see which codes bill, what each patient earns and how much reaches the company.

Invented company and invented inputs. Illustrative rates, not the fee schedule.

What to try

  • Set the days of readings to 15, then 16. The device code changes from 99445 to 99454 and the month earns more.
  • Move the management minutes from 19 to 20. The 10-minute code gives way to the 20-minute code.
  • Clear the live two-way contact box. Treatment management stops billing, but device supply carries on.
  • On the Rules tab, try to bill both codes in each pair. The second code is refused and no total moves.
  • On the Revenue tab, pay 99457 30 percent less and read what it costs per patient and what the company loses.

Billed per patient a month

$108.58

At the illustrative rates

Collected per patient a month

$96.72

After payers, denials and patient balances

Company fee per patient

$11.61

12% of collected cash

Largest code

99457

30% of collected cash

Patient month

Steady readings, one management call and some chronic care time, with a few minutes logged to both programs.

One patient, one month
20
30
40
10
12

Treatment management needs it. Device supply does not.

Chronic care minutes bill as

Minutes logged to both programs only matter for a patient in both. They count toward remote monitoring first, so chronic care bills on what is left. In this build a patient's care management minutes bill under one family of codes in a month.

Which codes bill, and why

Codes for remote monitoring only, per patient per month

  • 99453Setup and patient education
    Once$1.67

    Billed once per patient, so it is spread over the 12 months a patient stays enrolled.

  • 99454Device supply, 16 or more days
    Bills$45.00

    20 days of readings, and 16 or more earns this code.

  • 99445Device supply, 2 to 15 days
    No-

    16 or more days bills 99454 instead. Only one device code bills in 30 days.

  • 99457Treatment management, first 20 minutes
    Bills$50.00

    30 minutes with a live two-way contact, and 20 earns this code.

  • 99470Treatment management, first 10 minutes
    No-

    20 or more minutes bills 99457 instead. Only one of the two bills in a month.

  • 99458Treatment management, each added 20 minutes
    No-

    No full 20-minute block after the first 20 (10 minutes extra).

  • Average month, setup spread over the months enrolled
    $96.67

A steady month with no setup bills $95.00. The first month carries the whole setup and bills $115.00. These are the illustrative rates, before payers, denials and patient balances.

Checks that tie the numbers, 6 of 6 pass

  • PassCode lines add up to the totals. Every program and the blend equal the sum of their code lines.
  • PassExclusive pairs never bill together. No program bills both codes of a pair, and added blocks follow their first block.
  • PassMix shares add to 100 percent. The three program shares add to exactly 100 percent.
  • PassFee never exceeds collected cash. In every program the fee and the practice share add back to collected cash.
  • PassEach minute counts once. Billed minutes never exceed the minutes that exist, even when both programs apply.
  • PassCash never exceeds what was allowed. Denials only remove money, and payers plus patients equal collected cash.

Across this program mix a patient bills $108.58 a month at the illustrative rates, and $96.72 is collected after payer mix, denials and patient balances. The company earns $11.61 and the practice keeps $85.11. The largest code is 99457, at 30% of collected cash.