Q: Our primary practice is working on a cessation agreement to be used when a member retires or relocates. We are using the outstanding total A/R as of the date of termination multiplied by the gross collection percentage over the most recent 12 months. That number, the Collectable A/R, is then multiplied by a percentage to reflect the anticipated cost of collection. That number, the Net A/R, is then multiplied by the withdrawing member’s production percentage for his profit share allocation. Searching your previous questions and answers shows that for primary care a fair percentage ranges from 10 percent to 15 percent. Are these numbers still current?
