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Six Fundamental Revenue Cycle Management Metrics

To maintain a healthy cash flow and improve profitability, regular monitoring of revenue cycle management metrics is necessary for every healthcare organisation.

jennyvergeese
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Six Fundamental Revenue Cycle Management Metrics

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  1. For many healthcare providers, maintaining optimal cash flow and improving payment collection has become a challenge. They are losing money due to lack of rigorous and regular monitoring of their revenue cycles. Mentioned-below are six key revenue cycle performance metrics that should be discussed and analysed monthly by practices: 1. Number of days in A/R. This is one of the most important metrics that helps in understanding the efficiency of the current revenue cycle. Calculating the total number of days in A/R lets a provider know how many days it takes for a debt to be cleared.  Formula:  (Total current receivables - credits) ÷ (Average daily net patient revenue) Average daily charge amount can be calculated by dividing 3 months of net charge by 90 days Six Fundamental Revenue Cycle Management Metrics http://www.247medicalbillingservices.com

  2. 2. Net collection rate. This indicates how efficiently a practice collects reimbursements. A collection rate higher than 95% is satisfactory, however a healthcare organisation should aim for 98.5 - 99% rate. Formula:  (Total Payments - Refunds) ÷ (Total Charges - Contractual Adjustments) Net collection charge changes with the change in adjustments, charges, and payments. 3. Claim denial rate. This indicator is also a part of claim denials management. Denial rate is the percentage of claims denied by the payers. A denial rate higher than 10% is considered poor, and requires proper evaluation. Formula:  (Total amount of claims denied) ÷ (Total amount of claims remitted) Six Fundamental Revenue Cycle Management Metrics http://www.247medicalbillingservices.com

  3. About 247 Medical Billing Services: We are a medical billing company that offers ‘24/7 Medical Billing Services’ and support physicians, hospitals, medical institutions and group practices with our end to end medical billing solutions. We help you earn more revenue with our quick and affordable services. Our customized Revenue Cycle Management (RCM) solutions allow physicians to attract additional revenue and reduce administrative burden or losses. Contact: 247 Medical Billing ServicesTel: +1 888-502-0537Email: info@247medicalbillingservices.com Six Fundamental Revenue Cycle Management Metrics http://www.247medicalbillingservices.com

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