29 revenue cycle metrics to track long term

Monitoring revenue cycle performance is increasingly important for hospitals and health systems, physician organizations, ambulatory providers and integrated delivery systems as they aim to collect every dollar they are owed for their services. 

To do this, organizations use a variety of key performance indicators. 

Some organizations track certain KPIs more than others, based on their individual payer mix, location and other factors. But the Healthcare Financial Management Association recommends that organizations pay attention to 29 "strategic" level metrics, which are designed for long-term trending and oversight.  

They are:

1. Aged accounts receivable as a percentage of total billed accounts receivable

2. Aged accounts receivable as a percentage of billed accounts receivable by payer group

3. Aged accounts receivable as a percentage of total accounts receivable

4. Aged accounts receivable as a percentage of accounts receivable by payer group

5. Remittance denial rate

6. Denial write-offs as a percentage of net patient service revenue

7. Bad debt

8. Charity care

9. Net days in credit balance

10. Clean claim rate

11. Late charges as a percentage of total charges

12. Net days in accounts receivable

13. Cash collection as a percentage of net patient service revenue 

14. Uninsured discount

15. Uncompensated care

16. Case mix index

17. Cost to collect

18. Cost to collect by functional area

19. Percentage of patient schedule occupied 

20. Pre-registration rate

21. Insurance verification rate

22. Service authorization rate — inpatient and/or observation

23. Service authorization rate — outpatient encounter

24. Conversion rate of uninsured patient to third-party funding source

25. Point-of-service [POS] cash collections

26. Days in total discharged not final billed [DNFB]

27. Days in final billed not submitted to payer [FBNS]

28. Days in total discharged not submitted to payer [DNSP]

29. Total charge lag days

Click here for details about these metrics. 

 

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