What billing method divides patients with current balances into groups to equalize monthly statement processing?

Cycle billing is a billing method that organizes patients with outstanding balances into specific groups to streamline the monthly statement processing. By implementing cycle billing, a medical practice can allocate different billing cycles to different patient groups, ensuring that each group receives their statement at regular, staggered intervals throughout the month. This method allows for more efficient processing of statements, as it helps manage workloads and reduces administrative backlogs, making it easier for the practice to track payments and follow up with patients accordingly.

In terms of efficiency, cycle billing enables practices to maintain a steady cash flow by ensuring that bills are sent out on a consistent basis without inundating the office with all statements at once. This systematic approach also aids in better tracking and managing of patient accounts, allowing practices to potentially improve their collections.

Other billing methods, like flat rate, annual, or guarantor billing, do not incorporate the grouping aspect or staggered timing that cycle billing emphasizes. Each of these methods serves different purposes, but they lack the structured grouping that is characteristic of cycle billing, which is specifically designed to make statement processing more manageable and efficient.