Receipts Definitions
Receipts definitions. We begin with definitions to ensure you become familiar with our terminology, understand how to generate accurate stats, and to grow your knowledge so that you can identify better lead measures to move the needle for positive change and achieve your wildly important goals.​​
The first column is dedicated to terminology, followed by definitions, industry benchmarks, and ​examples of how to apply the information based on best practices.​ Let’s jump right in and read through each term and definition:​
Receipts – monies paid to the clinic in exchange for products and services. The actual money that goes into the bank account each day
Receipts goal – goal for receipts actual. This is generated from your comprehensive eye exams goal times your receipts per patient goal
Receipts actual – total monies actually collected from patients and insurance companies
Receipts per ECP day – receipts actual, which is patient plus insurance divided by the number of eight-hour ECP clinic days
Receipts per patient – receipts actual, which is patient plus insurance divided by the number of comprehensive exams
Gross sales – also known as charges, production, and revenue. These are the usual and customary materials and professional service fees you invoice each day
Contractual adjustments – these are discounts or write-offs applied to services and/or product, which are predetermined and mutually agreed upon by contract and may be found in your provider manual from each health insurance or vision discount plan. Contracts should be reviewed yearly to ensure the clinic can remain profitable before agreeing to the new discounted fees. Contracts should be negotiated to preserve the integrity of your business model and patient experience
Patient discounts – patient discounts would include second pair discounts or other promotions, like employee and family discounts
Net sales – gross sales minus all adjustments, such as contractual, courtesy, or global adjustments. This should equal the receipts actual you expect to ultimately collect
Patient receipts – also known as cash, collections, deposits, and payments. The money that is collected from patients
Patient refunds – when monies were collected for a service or product, then returned to the patient due to overcollection or unsatisfactory service or product
Insurance receipts – also known as cash, collections, deposits, and payments. This is money collected from insurance companies and vision discount plans
Insurance refunds – when monies were collected for a service or product, then returned to the insurance or vision discount plan company due to a billing error, such as double billing or other errors
Other payer receipts – you may utilize this category for special programs set up within your community that are not insurance and are also not paid by the patient. For example, if your Lions Club pays for services or product for a patient in need. For example, a special arrangement with a manufacturing facility to provide safety glasses to employees at a discount
Other refunds – when monies were collected for a service or product, then returned to the entity due to a billing error or unsatisfactory service or product
Gross receipts – this means all of your receipts
Net receipts – all of your receipts minus all refunds
Collection rate – receipts actual divided by gross sales
Okay, this was a great introduction, now let’s head over to the stats page!