Taking a proactive approach in managing your center’s revenue not only provides consistency but also the opportunity for growth. If you’ve identified specific issues or can’t put your finger on exactly what’s impacting financial performance, it may be time to consider revenue cycle management (RCM) resources outside of your ambulatory surgery center (ASC).
The following are a few hard-to-miss changes to key performance indicators (KPI) that might cause your center to need a better RCM solution:
- Increase in AR days: The gold standard for accounts receivable is 30 days. If your ASC starts to notice an upward trend in this KPI with days expanding to 35, 40 or more, it’s a clear-cut sign that an issue is developing.
- Decrease in revenue: The second major sign to watch out for is a drop in revenue. Revenue cycle issues can quickly create complexities and delays that directly impact the center’s monthly bottom line.
- Percentage of clean claims: The third sign is a decreased percentage of clean claims. The gold standard is 90 percent, and Regent RCM sets its standard at 93.3 percent. Your center might experience a drop in its clean claim percentage if claims spend too many days in AR. If they are left too long it may result in the payment being denied all together, which will negatively impact your center’s overall financial performance.
Next week we’ll bring you part two of this revenue cycle management improvement series. In part 2, we’ll look deeper into the less obvious changes happening in you center that could be negatively effecting your bottom line.