What is Reasonable Useful Lifetime for Capped Rentals?
RUL (Remaining Useful Life) in the context of capped rentals refers to the remaining time or usage period of a rental agreement before the capped rental period ends. It’s essentially the time left until the rental billing is capped or ceases, as determined by the interval set when creating a capped rental price option. In a capped rental scenario, RUL would indicate how much longer the rental item is covered under the current billing setup before the cap is reached and the patient may be eligible for new equipment.
When managing rental for medical equipment, such as oxygen or similar products, you may need a pricing model that allows for ongoing rentals without generating new invoices after a certain period in order to track when the capped rental period ends.
How Does It Work?
When you create a rental price option and toggle the capped rental option, you can specify an "interval end period." This means that NikoHealth will continue to track the rental billing for the specified period, but no additional invoices will be generated.
For example, if you set up a rental option with:
Billing Rental Interval: 1-36 months
Capped interval: 60 months (this is the number of periods for which the rental period will be tracked)
NikoHealth will continue tracking the billing period without generating invoices until the 60-month mark is reached.
This feature is especially useful for medical equipment like oxygen, where you might want to continue to track the rental periods after the initial rental billing ends, but without continually creating invoices.
How to Set Up a Capped Rental Price Option
Create or Edit the Price Option: Start by creating a new rental price option or editing an existing one in NikoHealth.
Toggle "Capped Rental": Scroll to the bottom of the pricing options screen. Here, you will find the Capped Rental Toggle. Select this option to activate the capped rental feature for the price option you are setting up.
Enter the Interval End Period: After selecting the "Capped Rental" option, you will be prompted to enter the Interval End Period. This is the maximum number of billing periods (e.g., months) you want to track the rental period.
Save the Price Option: After entering all necessary details, save the price option. From this point forward, NikoHealth will adhere to the capped rental pricing logic.
How to Report on Capped Rental Periods in NikoHealth
To effectively manage capped rental periods and keep track of the rental durations for each patient, you can use the Rental Report in NikoHealth. This report helps you identify the current rental period for any item under a capped rental arrangement, allowing you to monitor how much longer billing will continue before the cap is reached.
Here’s how you can generate a report on capped rental periods:
Step-by-Step Guide:
Access the Rental Report:
Log into your NikoHealth account.
Navigate to the Reports section from your main dashboard.
Select the Rental Report from the list of available reports.
Select Rental Periods and Filters:
In the Rental Report interface, you’ll have options to filter by patient, service, or rental period.
View the Current Rental Period:
The report will display details on each rental, including the initial date of service, rental period, and last invoice.
Identify Capped Rental Status:
You can easily determine if a rental is nearing its cap or has already reached the capped rental period by checking the current rental period and the final billing period.
Export the Report:
If needed, you can export the report to Excel for further review or record-keeping.