Key Performance Indicators (KPIs) are the numerical factor used to quantitatively measure performance. There are a variety of KPIs that are used across healthcare to measure real-time performance in areas such as business processes, financial assets, functional groups, and revenue cycle as a whole.
KPIs can be used to view a snapshot of each area on an individual, group, department, or overall basis. They’re a vital measurement in being able to assess the current situation, determine route causes, and identify problem areas. Once the issues are identified, it is important to set goals and expectations on an individual, group, department, or system-wide basis.
When setting and monitoring these indicators, it’s important to set SMART goals:
- Specific – be clear and direct
- Measurable – quantitative vs. qualitative
- Achievable – stretch, but not out of reach; don’t set people up to fail!
- Relevant – tie to overall system-wide goals
- Time Specific – timelines are important to stay focused
Common KPIs to Watch, Measure, & Trend
There are so may benchmarks that can be tracked in revenue cycle management, that it would be impossible to list them all. However, according to HFMA, some of the top industry revenue cycle management KPIs to monitor are:
- Days in A/R
- Clean Claims Rate
- Average Treatment Charge
- Insurance Aging (as a % age of billed amounts)
- Rejection and Denial Rates
- Bad Debt, Charity Care, Uncompensated Care
When working with a revenue cycle management consultant, they can help you navigate the best software available for metrics. MedCycle Solutions specializes in improving your bottom line by streamlining your processes and EMR & PMS implementation & optimization.
Euclid RCM’s software takes your revenue to new heights with operational analytics tools to help you to optimize your claims and billing processes.
Written in partnership with Euclid RCM.