Monitoring key performance indicators (KPIs) is an invaluable method of ensuring that your ambulatory surgery center (ASC) is protecting its bottom line and is financially healthy. In order to track these ASC metrics, you need to have sufficient analytical tools in place such as a real-time management console and software that creates customized reports.
There are numerous ASC metrics and KPIs that can be monitored, but customizing key metrics allows you to better focus on measuring and managing the critical components of your center’s revenue cycle.
Must-track ASC metrics & KPIs to monitor
Days in accounts receivable: AR days gets a lot of attention and for good reason. This ASC metric alerts your business office to the average number of days it takes your center to receive a payment. The industry benchmark is 30 days, but if your AR days start to climb to 35 or 40 days it’s a strong indicator that there may be an issue within the revenue cycle. An increase in AR days could negatively affect your bottom line, so tracking the issue to determine where it’s coming from will help you put a plan of action in place to reduce the number of days in accounts receivable.
Revenue per case: Another ASC metric you want to monitor is revenue per case. This tells you how much reimbursement your ASC is receiving from each case, and you can track trends over time. This metric can also show you how reimbursements change through time in addition to the amount of revenue coming in per case. Analyzing revenue per case can also be broken down further to look at each specialty to see if it’s profitable.
Payer mix: A third ASC metric to analyze is the payer mix. Reviewing the percent of total billed charges to single payer and percent of total revenue from a single payer, provides you with insight on how financially dependent your center is on particular payers. If charges are high but the percent of revenue is low, there might be an issue with non-payments or changes with reimbursements that you should be aware of.