Using Weighted Distribution Payment Spread
Weighted Distribution payment spread is the same as FIFO except that you can apply the payment in a weighted percentage based on the patient bucket for each line item in the Balance Control window.
- Patient Weighted Distribution uses the patient balance.
- Third Party Weighted Distribution uses the charge amount.
The following example demonstrates weighted distribution spread for third parties:
Suppose you had three charges of $25.00, $35.00, and $50.00, and a payment of $10.00.
- First the system would calculate the percentage of each charge to the sum of all the charges:
$25 + $35 + 50 = $110
$25 ÷ $110 = 22.7%
$35 ÷ $110 = 31.8%
$50 ÷ $110 = 45.5%
- The percentage for each charge would be multiplied against the payment to determine what will actually be applied to the line item.
22.7% X $10 = $2.27
31.8 % X $10 = $3.18
45.4% X $10 = $4.55
$10.00
- So, $2.27 is applied to the $25 charge, $3.18 is applied to the $35 charge, and $4.55 is applied to the $50 charge.