How to calculate it
Total collections divided by total units billed, for the same cases. Do it overall and for each payer.
What it tells you
- Payer mix. More Medicaid and Medicare means a lower average.
- Contracts. If one commercial plan pays far less per unit than others, look at the contract.
- Underpayments. If a payer's rate drops without a contract change, something's wrong.
- Coding. If units per case drop, you may be missing time or modifiers.
Use it in negotiations
When you talk to a surgery center about a stipend, revenue per unit and payer mix are the numbers that make your case.
This article is general information, not billing, legal or tax advice. Payer rules change; always check current guidance.
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