Thus, the moving average cost of the green widgets was $5 per unit at the beginning of the month, and $5.88 at the end of the month. We will repeat the example, but now include several sales. Remember that we recalculate the moving average after every transaction.
Finally, pass-through billing is an arrangement in which a laboratory tests samples provided by a physician for a fee, and allows the physician to profit by billing payers directly for the laboratory services for more than the physician paid the laboratory. This approach is typically avoided for Medicare and Medicaid patients by most physicians.
Providers should also be aware that many states also have laws that prohibit such pass-through billing arrangements. Physicians need to be wary of doing business with laboratories that offer the opportunity to profit financially from the business relationship between the parties.