7 INDICATORS THAT YOU NEED TO OPTIMIZE YOUR PRACTICE'S
1. Accounts Receivable
This measure reveals how quickly a practice turns receivables into cash. Ideally, organizations should be keeping this metric under 30 days to yield nimble cash flow.
2. Age of
This number shows how long a receivable has been outstanding. The longer a claim remains unpaid, the less likely it will be
collectible. Organizations should examine those receivables past due over 90 days and determine whether there are preventable issues that can be addressed to shorten the payment time frame and
prevent similar problems in the future.
3. Average Daily
Practices should track this metric over time to identify any patterns which could reveal productivity issues or patient volume
fluctuations. For example, by monitoring this measure a practice can pinpoint staff members who are under performing and provide further training. Similarly, this measure can highlight seasonal
patient volume variations that may represent opportunities to temporarily augment staff to better manage cash flow.
This statistic compares the payments a practice receives with what it is supposed to receive for the services it provides. Using this measure shows how well the practice optimizes payer contracts and collects balances due from patients.
5. Clean Claim
Using technology, this number should be high (near 100%) as claims scrubbers and other tools identify “dirty claims” prior to
claims submission, allowing the organization to fix them before sending the claim to the payer. A decline may indicate the need to change payment rules and algorithms, improve workflows or train
With the advent of high- deductible health plans, patients are taking on greater payment responsibility. Whereas providers used to
be haphazard in collecting co payments, deductibles, and coinsurance, there is increasing pressure to fine-tune this process to prevent large revenue shortfalls. Practices that watch
patient collection rates can make sure their front line staff are asking for and collecting payments consistently and reliably. Outliers in this area can point to the need for staff training,
patient education and standardized processes for soliciting payment.
Practices should keep a close eye on rejections and denials, because they can highlight a wide array of problems, ranging from staff errors to payer rule changes to lack of eligible verification. Practices that watch for denial trends can catch systemic issues and prevent future rejections.