| Average Medicare DSO (Days Sales Outstanding) By Product Category | DME (E0260, K0001, E0143, Etc.) | 47 |
| Respiratory (E1390, J7619, E7619, Etc.) | 88 | |
| Rehab (K0011, K0108, E0010, Etc.) | 62 |
HCPCS Code 1390
(stationary oxygen concentrator)
Average Medicare DSO
47 days
Some of the best providers are getting paid for a stationary oxygen concentrator (HCPCS 1390) in 25 to 30 days — about half of the average DSO — according to Bently Goodwin, CEO of RemitData, Memphis, Tenn. But theoretically, a provider could get paid in 14 days, he explains. So why is it taking most providers so long? “They're not on top of the CMN process, and it's taking them a long time to get CMNs back,” says Goodwin. Often, the problem with claims for oxygen concentrators is that there is already an existing CMN on the patient or there is something technically wrong with the CMN. “It has nothing to do with medical necessity,” he notes, explaining that it could mean the CMN has not been attached to the claim, is not filled out correctly or the one transmitted doesn't match up with one already on file from a different provider. “Thirty days ought to be enough days to get a good CMN,” says Goodwin, who notes that once providers get a CMN and are able to bill, they should be set, but “this is just a huge inefficiency out there that providers have.” To lower the DSO on this item, Goodwin recommends that providers “develop a better handle on their CMN process. E-CMNs would be great if doctors would use them. But you can't force them to.” He adds, “Find out what your DSO is and measure it. If it can't be measured, it can't be managed.”
Data represents a categorized and weighted analysis of approximately 1,091,000 Medicare paid claim lines adjudicated by the four DMERCs between Aug. 1 and Aug. 31, 2005, and processed for RemitDATA customers. Figures reflect the average number of days elapsed from date of service to Medicare check issue date. Source: RemitDATA, 866/885-2974, www.remitdata.com
