Introduction: Healthcare executives are responsible for overseeing financial performance, and monitoring the right KPIs is essential for maintaining a healthy revenue cycle.
Key Points:
1. Days in Accounts Receivable (AR): Measures how long it takes to collect payments. The shorter the AR days, the healthier the cash flow.
2. Claim Denial Rate: Tracks the percentage of denied claims. A low denial rate indicates efficient billing and coding processes.
3. Clean Claim Rate: Measures the percentage of claims submitted without errors. A high clean claim rate reduces delays and improves cash flow.
4. Cost to Collect: This KPI highlights how much it costs to collect revenue. Keeping this metric low ensures financial efficiency.
5. Net Collection Rate: Shows the percentage of collectible revenue received. A high net collection rate indicates that the organization is effectively capturing and collecting revenue.
Conclusion: Monitoring these KPIs regularly can help healthcare executives make informed decisions and optimize their RCM processes for better financial outcomes.