Revenue Cycle Management (RCM) involves managing healthcare services’ financial aspects, from patient registration to final payment. It involves a series of interconnected steps that healthcare providers must take to ensure they are billing and collecting payments accurately and efficiently. Tracking Key Performance Indicators (KPIs) in your RCM is essential to ensuring the financial health of your healthcare practice. KPIs are quantifiable measures that reflect the performance of various aspects of your RCM process. This article will explore the top KPIs to track in your revenue cycle management to help you optimize your financial outcomes and improve your bottom line. Here’s a complete Checklist of “Top KPIs to Track in Your Revenue Cycle Management”:
- Days in accounts receivable
- First pass yield rate
- Denial rate
- Net collection rate
- Gross margin
- Cost to collect
- Patient satisfaction score
- Claim denial rate
For each KPI, consider the following:
- How is it calculated?
- What is the industry standard for this KPI?
- How does your organization compare to the industry standard?
- What are the implications of a low or high score for this KPI?
- What actions can you take to improve this KPI?
By tracking these KPIs and answering these questions, you can gain valuable insights into your revenue cycle management performance and make informed decisions to optimize your revenue cycle.