Realization compares amounts collected against amounts recorded at standard rates. Billing realization measures the effect of write-downs before invoicing, while collection realization accounts for what clients ultimately pay.
Rates vary by practice area and client type.
Alternative Names:
Realization, Collection Realization
Why it Matters?
Realization is the metric that reveals what insurance defense work actually earns, since guideline write-downs occur between recording and collection and are invisible in hours alone. A practice with strong utilization and weak realization is doing the work and not being paid for it, and the cause is usually narrative quality and guideline compliance rather than rate pressure. Tracking realization by client identifies which relationships are economically viable.
Frequently Confused with
Related terms
Frequently asked questions
What drives low realization in insurance defense?
Why track realization by client?
