One of the toughest challenges for surgery center leadership is determining the health of their revenue cycle. To help, Regent RCM developed ASC-specific revenue cycle management benchmarks to give ambulatory surgery centers (ASCs) a much better handle on financial issues. A new white paper available here outlines how ASCs can use the benchmarks.
“Centers needed visibility into revenue cycle performance,” said Regent RCM Director of Revenue Cycle Management Erin Petrie. “Until now, ASC-specific measurement tools did not exist. We addressed that head-on and by doing so, armed center leadership with tools they can customize and deploy to gauge their center’s financial health.”
While the white paper features nine ASC benchmarks, this blog looks at the first three:
Since more business office staff does not mean more efficiency, the first benchmark helps ASCs optimize staffing based on the number of cases served. The Regent RCM gold standard, based on data mined from ASCs over several years, is 1.5 full-time employee equivalents (FTEs) per 1,000 cases. “Centers that have more than 1.5 FTEs may want to examine their business office practices,” said Petrie.
Depending on outside forces, such as case mix, payer mix and whether the center is in-network, the most effective number of accounts receivable days outstanding can fluctuate from the high teens up to 30 days. So, while Regent RCM’s gold standard is less than 30 days, Petrie says this metric should be customized for each facility.
A/R Over 90 Days
Tracking aging accounts receivable (A/R) can highlight issues with patient collections processes and/or insurance denials. The Regent RCM gold standard for A/R over 90 days is 20% or less. In general, Petrie says that if a center’s percentage is very low it could mean revenue cycle staff are writing off balances prior to receiving the full contractual amount, while too high may indicate a lack of follow up.
To learn more about KPIs and benchmarks for revenue cycle management, download the full white paper.