How healthy is your ambulatory surgery center’s (ASC’s) revenue cycle? Do you have a general sense of your center’s profits and cash flow – or can you point to real data and analytics?
To develop a clear picture of your revenue cycle performance, you need to gather the right information. Tracking and analyzing key performance indicators (KPIs) gives your ASC powerful tools to pinpoint positive and negative trends, address problems, and make data-driven improvements. Implement benchmarks to set a baseline, marking where you are starting from, where you are heading, and what process changes you need to make to reach your goals.
Here are three important KPIs to focus on to make significant improvements in your revenue cycle.
Accounts Receivable (A/R)
Investigate how many outstanding accounts you have and how many are more than 90 days old. If the percentage is too high, your center may not have an efficient process for following up on claims. If it’s too low, you may be writing off balances before receiving the full amount due. Establish systems for tracking A/R on a certain schedule, setting up alerts to remind staff to follow up on claims after a set number of days. Pay attention to patterns that show up across denials, and educate your staff about common errors to avoid in new claims.
Measure how long it takes, on average, to enter new charges for billing. Set a benchmark for this action, ideally within 24 to 48 hours of the date of service. If you notice a longer charge lag, look for factors that may have contributed to the delay. Are there problems with dictation, coding, or invoicing? What can you do to remove these obstacles?
Calculate the percentage of clean claims your ASC sends out each month. How many contain errors or missing documentation that lead to denials? Have you noticed trends with certain payers? A high clean claims rate is correlated with a low denial rate and timely payment. Identify and document the reasons claims are being denied, and make adjustments to your processes so you can send complete and correct information to payers the first time.
Interested in improving your revenue cycle management? Contact Regent RCM’s expert team.