Without establishing key performance indicators (KPIs), it becomes impossible to measure your practice’s productivity and long-term success. KPIs help you and your team look at the big picture of how well your practice is performing, where you need to fine-tune your revenue cycle management (RCM) process and draw smart conclusions.
First you need to determine what you want to learn. You don’t want to just collect data, you want to choose KPIs that provide relevant information to drive better business decisions and find solutions to problems. You clearly want to reduce costs. Do you also want to examine specific reimbursement improvements, implement greater workflow efficiency? Start with a baseline and look for trends. For example, are you interested in looking at payers based on denial issues or other metrics? KPIs can help deliver the insight you will need to draw smart conclusions and truly understand the cost to collect on each claim.
KPIs should be specific to your organization and allow you to set goals and make projections.
You will want to apply best practice industry benchmarks specific to your specialty or geographical area. You can use KPIs to measure the average length of a patient visit, missed appointments, claim rejection rates and the net collections rate as a percentage of revenue. For example, if the denial write-off ratio is close to 4% and the recommended range is 2-3%, you may want to investigate why you are not within industry standards.
Determine how you will display and track KPIs, such as through dashboards, charts and graphs. What frequency makes the most sense for your practice? If you have the resources, put someone in charge of collecting the data and automate it whenever possible.
Work with a professional advisor to help you establish the metrics that make the most sense for your practice’s RCM process.
Our new e-book, “Healthcare Revenue Cycle Management,” is meant to help you review aspects of your RCM process through a critical lens and make any necessary changes to produce greater cash flow. We seek to provide you with insightful industry knowledge to help you grow your healthcare business to its full potential.
You may download our new e-book by completing a brief form.
When your RCM function runs smoothly, everyone can keep their focus squarely on doing what they’re supposed to do to ensure optimal outcomes. Make sure you are communicating new processes throughout your entire team, especially in light of adjustments you have had to make to address COVID-19 revenue challenges. Everyone needs to be on board to truly make improvements.
The healthcare accountants and advisors at Goldin Peiser & Peiser have decades of advising medical practices, hospitals and senior living facilities. They have helped their clients understand ways to maximize RCM by suggesting best practices and technology that can boost operational efficiencies and outcomes. Our Revenue Cycle Management Group specializes in driving system-wide efficiencies for medical offices, hospitals, surgical centers and long-term care facilities.
For more information, please contact Erick Cuter, CPA, or Alita Stratton, CPA, at (972) 818-5300.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.