Gauging the financial condition of healthcare businesses can challenge potential investors grappling with variables like revenue recognition and collections. This is largely because of the unique third-party reimbursement arrangements that exist for healthcare providers. Payer contracts, a diverse mix of services, and a fluctuating regulatory environment can create uncertainty regarding actual revenues and expected collections on outstanding receivables.

Our exclusive article dives deep into the essentials of a Quality-of-Revenue analysis (QoR), a critical tool for investors looking to understand a business’ stability.

Whether you’re grappling with payer contracts, service mix, or the ever-changing regulatory landscape, our article will help you get to the true financial condition of a healthcare business.

In this article, you will find:

The Key Components of a QoR Analysis

Learn how a QoR, often known as Cash Waterfall Analysis, dissects revenues by source, adjusts for contractual allowances, reconciles billed versus collected amounts, and evaluates the impacts of payer mix and regulatory shifts. This approach aids in understanding revenue discrepancies and highlights key factors that influence revenue collectability.

A Detailed Process for Performing a QoR

Discover the process of performing a QoR, starting from validating raw billing data sourced from Practice Management Systems (PMS) to reconciling gross charges and analyzing revenue cash proof. Our article walks you through the steps of data disaggregation, enabling you to pinpoint trends and shifts in revenue dynamics.

An Explanation of Patient Revenue and Its Impact on Valuation

Gain insights into estimating patient revenue, comparing it with reported revenue, and understanding the significant impact of QoR on EBITDA and overall company valuation. This knowledge is crucial for making informed investment decisions.

Complete the below form to receive an email with a link to download “What is a Quality of Revenue Analysis and How Is It Performed?” which will provide the essentials of a Quality-of-Revenue analysis (QoR), a critical tool for investors looking to understand a business’ stability.