Define "payer mix."

"Payer mix" refers to the distribution of different types of insurance coverage among a healthcare provider's patients. This concept is important for healthcare facilities and providers as it affects their overall revenue and financial stability. A diverse payer mix typically includes various sources such as private insurance, government programs (like Medicare and Medicaid), and self-pay patients. Understanding the payer mix allows providers to strategize their billing practices, anticipate revenue flow, and manage potential risks associated with relying heavily on one type of payer.

For example, if a provider has a high percentage of patients covered by government programs, they may face lower reimbursement rates compared to those with private insurance. Thus, tracking the payer mix is essential for effective financial management and planning within healthcare organizations.