| Average Medicare DSO (Days Sales Outstanding) By Product Category | DME (E0260, K0001, E0143, Etc.) | 66 |
| Respiratory (E1390, J7619, E7619, Etc.) | 48 | |
| Rehab (K0011, K0108, E0010, Etc.) | 88 |
HCPCS Code E0260
(semi-electric hospital bed)
Average Medicare DSO
58 days
“While 58 days is lower than the DME category average of 66, it is much higher than providers can afford for it to be,” according to Bently Goodwin, CEO of RemitData, Memphis, Tenn. “For many suppliers, the hospital bed is a top 10 revenue-producing item and an area where there is a great deal of room for DSO improvement. The biggest reason for the high DSO on this item is CMN issues. Companies simply are not getting good CMNs back from the physicians on a timely basis. These issues also extend around break-in-service issues and whether or not a revised CMN is needed, as well as the modifier issues involved with starting a new capped rental period. Ongoing rentals for this item should have a DSO of 15 to 20 days, and initial billings for new patients should have a DSO of no more than 30 to 40 days.”
Data represents a categorized and weighted analysis of approximately 1,020,000 Medicare paid claim lines adjudicated by the four DMERCs between Sept. 1 and Sept. 30, 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
