How facts and figures play a key role in a practice’s financial health
There’s something to be said about a really great statistic or fact. For example, did you know our world has roughly 6,500 different languages, yet almost 2,000 of these languages have as few as 1,000 speakers*? What about how many licks it takes to get to the center of a Tootsie Roll Pop (the answer is about 1,000** )?
People tend to love statistics and metrics not only because they’re fodder for compelling dinner party conversation, but they also enable us to speculate, analyze and develop new insights. As you strive to keep your practice financially healthy, key revenue cycle metrics can help you benchmark success, expose areas in need of improvement and guide critical decisions.
Factors such as the ICD-10 transition and rising patient financial responsibility make it particularly important to track metrics such as days in A/R, percentage of A/R greater than 90 days and your adjusted collections rate. And if you’re already monitoring these numbers, why not go a step further? For example, the paid amount divided by the allowed amount enables you to determine actual payer reimbursement versus the contract rate.
It may seem like a luxury to spend time on these metrics; however, the business intelligence you can glean from identifying trends and problem areas can be invaluable!
The resource guide, Key Metrics in Revenue Cycle Management, provides an overview of the most important revenue cycle metrics, how to calculate them and what value they bring to your practice.
**“Shape dynamics and scaling laws for a body dissolving in fluid flow,” Jinzi Mac Huang, M. Nicholas J. Moore, and Leif Ristroph