Revenue adjustments

Discover why revenue adjustments may be rising.

Q: Why are my revenue adjustments going up? I am just as busy as ever and I have no new health plan contracts.

A: You may have no new contracts, but you might have old ones that have been amended downward that you didn't notice. First step, dig the contracts out and get updated ones. Renegotiate or dump the losers. Also, you may have some low-yield contracts but an increase of business covered by them.

Look at the patients on the losing plans. Are they new? If so, where did they come from? If they are finding you "in the book" with no personal referral you might decide to renegotiate or dump. But, if they are not new, maybe some of your patients chose to change to a less expensive plan, as long as you are listed. If they are new and come from your best referral sources, you may need to bite the bullet. But, in any event, kudos to you for noticing. The adjustments usually don't get noticed.

Answers to readers' questions were provided by Jack Rue Coleman, CHBC, Dental-Medical Economics, Plano, Texas; and Medical Economics consultants Keith C. Borglum, CHBC, Professional Management and Marketing, Santa Rosa, California; and Judy Bee, Practice Performance Group, La Jolla, California. Send your practice management questions to

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