How do I evaluate profit and loss including material costs?
Profit and loss ("P&L" button) tracks "write off" and "profits".
Insurance write off = insurance credit - insurance paid
Patient balance (Plus pt balance) = insurance write off + patient balance
Current write off (total) = total billed - total paid
Active Collection Amount(s) = under paid amount (add the date you are finished trying to collect from the patient and/or the insurance).
Profit = The total collected - Actual ("Act") or estimated ("Est") material costs
The P&L does not include overhead costs or doctor hours. It can help you compare relative values between various insurance or discount plans and track collections.
To see PROFIT & LOSS details, Click TRANSACTIONS > "P&L"
OD Link estimates the profit automatically ($64 in this example). If you know the actual cost from the bill, it can be updated here. The profit will update.
Make sure you have either an estimated or actual cost but not both (can also be changed in the TRANSACTION window on the same line as the item, on the right side - see next step.)
You may also modify the optional estimated ("Est.") or actual cost ("Act") values in the TRANSACTION window.
Make sure you have either an estimated or actual cost but not both.
This example includes insurance information 1. Current insurance write off (insurance credit minus the amount paid....so far).
Notice that the "Active Collection Amount' is $17.09 (insurance write off plus the patient balance shown in the blue area next to patient name).
The "Active Collection Amount' has been dated to mark it as "finished with collections" so the amount changes to $0.00.
"Active Collections Amount" allows you to track active collection amounts vs old amounts that you have stopped trying to collect on. Once dated, the Current Write Off is the write for this transaction.
In this case the VSP EOB payment is negative (somehow that's just wrong!), but they pay the lab bill so material costs are $0.00.
Notice that you can compare the actual profit with other plans that do not pay the lab bills and compare total profit per patient.