How it's calculated
Payments ÷ (Charges − Contractual adjustments) × 100
Contractual adjustments are the amounts you agreed with payers not to collect. What's left is what you should be able to collect. Net collection rate shows how much of that arrived.
What good looks like
Billing advisers commonly treat a net collection rate above 95 to 96 percent as strong. Below that, money is usually being lost to denials, timely filing or write-offs.
How to improve it
- Work every denial and track the reasons
- Stop write-offs that aren't approved by you
- Check that time, physical status and qualifying circumstances are captured
- Follow up on unpaid claims before filing deadlines pass
This article is general information, not billing, legal or tax advice. Payer rules change; always check current guidance.
Sources
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