Payer mix

Definition

The split of revenue across who pays, each source with its own rate and its own reliability.

Why It Matters

The mix decides both margin and risk. Private pay bills higher and settles faster; Medicaid pays less, later, and with more compliance attached, so two agencies of equal revenue can be very different businesses. Ask for revenue and days-to-collect by payer, not just the split, and check whether any single contract or referral source dominates. A book shifting toward the slower payers is a working-capital problem arriving quietly.