How net collection rate is calculated
Net collection rate is payments divided by charges after contractual adjustments, over a period — the money you were genuinely owed once insurer discounts are taken out. That's what separates it from gross collection rate, which is skewed by how high you set your charges and flatters almost everyone.
What's a good net collection rate?
The AAFP puts the average rate at 95% to 99%, with 95% as its stated minimum. Below about 95% is a leak, and it's rarely insurer discounts — it's denials, underpayments and patient balances that were collectible and weren't collected. A couple of points on a mid-size practice is real, recurring money.
What actually moves it
Work and appeal denials quickly, check payments against your contracted rates to catch underpayments, collect patient balances at or near the visit, and keep write-offs disciplined so nothing collectible is quietly zeroed out.
Questions people ask
about this number.
WHAT IT MEANS
WHAT MOVES IT
It is the share of the money you were actually owed — charges minus contractual adjustments — that you collect. It measures how well you collect what is collectible, unlike gross collection rate, which is skewed by how high you set your charges.
The AAFP puts the average rate at 95% to 99%, with 95% as its stated minimum. Below about 95% typically signals denials, underpayments or uncollected patient balances rather than insurer discounts.
Work and appeal denials quickly, check payments against contracted rates to catch underpayments, collect patient balances at or near the visit, and keep write-offs disciplined.