Income Allocation Operational Report
Since the membership discount credits automatically affect collections (applied payments, net applied payments) and many offices pay their providers in a number of ways, such as collections OR production, we have to make some decisions and answer some questions before pulling the income allocation report for Provider Payroll, because there are 3 possible Income Allocation report combinations.
Question 1: Do you pay providers on Production, Applied Payments, or Net Applied Payments?
Question 2: Do you pay your providers on the total charge amount (net patient portion PLUS membership credit), or just the net patient portion amount (patient portion ONLY)?
For example, imagine a code charged for $100.
- Total Charge Amount = $100
- Membership Credit Discount = $20
- Net Patient Portion = $80
Will you pay the provider off the $100, or the $80?
Note: Also think of the above scenario with a code that has a 100% Membership Credit Discount, such as a hygiene visit exam. |
Will you pay the provider off the $100, or the $0?
Now that you know HOW you will pay your provider, let’s go over the 4 options and how we pull the Income Allocation operational report.
- Production INCLUDING membership credit discount
$100 code charge - $20 membership discount = $80 patient portion: and $100 provider payroll
- Production LESS membership discount
$100 code charge - $20 membership discount = $80 patient portion: and $80 provider payroll
- Applied/Net Applied Payments INCLUDING membership credit discount
$100 code charge - $20 membership discount = $80 patient paid: and $100 provider payroll
- Applied/Net Applied Payments LESS membership credit discount
$100 code charge - $20 membership discount = $80 patient paid: and $80 provider payroll
*When mentioning “Income Allocation report” below - you can use the Income Allocation OR the Income Allocation.
Option 1
Production INCLUDING membership credit discount
- Navigate to the Income Allocation report in Operational Reports.
- Within the generation criteria, “Exclude Membership Discount Credits” checkbox does not matter if it’s checked or not.
Note: Membership discounts DO NOT auto affect production. |
Option 2
Production LESS membership discount
- Navigate to the Income Allocation report in Operational Reports.
- Within the generation criteria, “Exclude Membership Discount Credits" checkbox needs to remain UNCHECKED.
- Take the dollar amount in production column (gross or net - office preference) and MINUS the value listed in the membership discount credit column.
Option 3
Applied/Net Applied Payments INCLUDING membership credit discount
- Navigate to the Income Allocation report in Operational Reports.
- Within the generation criteria, Exclude Membership Discount Credits checkbox needs to remain UNCHECKED.
- Take the dollar amount in either the applied payments (or net applied payments) column - office preference.
Option 4
Applied/Net Applied Payments LESS membership credit discount
- Navigate to the Income Allocation report in Operational Reports.
- Within the generation criteria, Exclude Membership Discount Credits checkbox needs to be CHECKED.
- Take the dollar amount in either the applied payments (or net applied payments) column - office preference.
Note: Any membership discount credit value that was included in these columns on Option 3, will now be removed from these columns. |
| Note: You cannot mix and match based on procedure code - it is all or nothing with provider payroll. For example - I can’t choose to pay my provider on the gross applied payments (including the discount) on exams, and the applied payments/net applied payments (not including the discount) on everything else using this report. That type of complexity would require hand calculations and the use of other reports. |
Payment Log Operational Report
If running the operational report, Payment Log, keep the 'Exclude membership discount credits' box UNCHECKED, so that you can see “How much you gave away in discounts?” for the time period you ran the report for. The membership credit that was given away in discounts will be displayed in the generated report.
Other Operational Reports
Note: The “Exclude Membership Discount Credits” checkbox within the report generation criteria is available in the following financial reports:
|
- The checkbox to exclude membership credits is not listed in the ‘Deposit’ report because that report only shows real money being deposited into the office bank account.
- The checkbox to exclude membership credits is not listed in the 'Payment Reconciliation' report, because it can be filtered out via the “Payment Category” filter.
Reminder
- Membership premiums will not populate on ANY operational reports or KPI’s within CareStack.
- Membership premiums stay housed on the Membership Portal and the CS Pay Portal.
Practices can use this detailed article to make the most of the Income Allocation Operational Report.