How Does Your ASC Measure Up? Benchmarking Basics for Revenue Cycle Health

Until recently, when it came to “diagnosing” revenue cycle health, ambulatory surgery centers (ASCs) often turned to hospital or physician practice metrics, due to a lack of revenue cycle measurement tools developed specifically for them. But ASCs really needed a view into revenue cycle performance that factored in the business challenges unique to their business model and circumstances.

Regent Revenue Cycle Management (Regent RCM) has addressed that need head on with development of ASC-specific benchmarking tools that ASC leaders can customize and deploy. In a white paper titled, “Using ASC-Specific Benchmarks to Assess the Health of Your Revenue Cycle,” Regent RCM shares nine ASC-specific benchmarks to help track and measure revenue cycle performance. The paper outlines how surgery centers can use the benchmarks to assess their revenue cycle; including understanding how numbers can be improved, why they might fluctuate and how they can often be misleading.

The benchmarks dive deep into key components that shape and define revenue cycle health, offering both a benchmark and a Regent RCM “Gold Standard” to help ASCs understand what’s optimal and work to improve in each of the following areas:

1. FTEs/1000 Cases
2. Days Outstanding/Days in AR
3. Percent of AR Over 90 Days
4. Claim Lag
5. Charge Lag
6. Statement Lag
7. Claim Denial Percent
8. Clean Claim Percent
9. Net Collection Rate

The white paper also includes examples of success gained through application of the benchmarks. For example, one facility in the southeast significantly improved the efficiency of its Accounts Receivable efforts through consistent follow-up with accounts and a more thorough understanding of how each payer processes claims. In another ASC, a high volume orthopedic center, collections were nearly doubled from May to December, with no significant changes to volume or case mix. In this case, Regent RCM’s benchmarks helped the ASC work with its clearinghouse to develop custom edits to ensure clean claim submission.

Regent RCM is a leading provider of innovative and cost-effective revenue cycle management services exclusively for ASCs. To learn more about the company’s benchmarking tools for ASCs, download the white paper here.

ASC Revenue Cycle Management

Regent Revenue Cycle Management Spearheads Benchmarks to Assess Surgery Center Revenue Cycle Health

New white paper defines nine metrics centers can customize, deploy, and measure to improve performance.

Regent Revenue Cycle Management (Regent RCM), an independent division of Regent Surgical Health and a leading provider of innovative, cost-effective revenue cycle management services exclusively for ambulatory surgery centers (ASCs) in the United States, today released a white paper outlining nine ASC-specific benchmarks to accurately and consistently assess the health of a surgery center’s revenue cycle.

“One of the toughest challenges for surgery center leadership is determining if their revenue cycle is healthy,” said Regent RCM Vice President Michael Orseno. “Our new white paper gives ASC leadership more visibility into that performance, and to help them understand how numbers can be improved, why they might fluctuate, and how they can often be misleading. Using our benchmarks, ASCs can accurately measure revenue cycle health, and ultimately, locate every dollar they are entitled to.”

Lacking standardized revenue cycle measurement tools, specific to ASCs, leadership leaned on hospital or physician practice metrics. Given the differences in payer mix, case mix, and contracts, those metrics not only caused confusion, they failed to provide the assessment tools centers needed to be successful and to compete in an increasingly competitive healthcare market. Regent RCM’s white paper outlines nine critical metrics that centers can customize, deploy, and measure to gauge their financial health.

“Many of these metrics, such as Days Outstanding and Clean Claims Percent, are certainly familiar, but centers can’t currently use them as benchmarks because they don’t know what the gold standard should be for their case-mix and contracts,” said Orseno.

An important theme of this paper is how the nine benchmarks relate to each other. “Until now, center leadership might question how their center’s revenue cycle could be performing poorly when its Days in A/R are under 30. The numbers often lie, and these benchmarks can pinpoint the problem areas,” added Orseno.

Among the nine metrics is a benchmark for the optimal number of full-time business office employees per 1,000 cases. The exclusive metric was developed by Regent RCM after it mined data from ASCs for several years. “Surprisingly, we found that busier centers are often more efficient,” stated Orseno.

The white paper also features examples of ASCs where the application of the benchmarks is already improving revenue cycle management. An out-of-network center in the southeast, for example, learned first-hand the impact Regent RCM’s benchmarks have on improving financial health. Since working with Regent RCM, the center has become more efficient in A/R. The center in March 2016 shattered a trio of records, achieving 42 days in A/R, $895,590 in collections, and at 26.3%, its lowest percent of outstanding accounts in A/R over 90 days.

To download the free white paper, click here.

About Regent Revenue Cycle Management

Regent Revenue Cycle Management (Regent RCM), an independent division of Regent Surgical Health, is a leading provider of innovative, cost-effective revenue cycle management services exclusively for ambulatory surgery centers throughout the United States. Regent RCM harnesses Regent Surgical Health’s 15 years of ASC industry expertise, allowing Regent RCM to consistently outperform industry benchmarks. To learn more visit www.regentrcm.com or join the conversation via Twitter.

8 steps to prepare for ICD-10

WHITEPAPER: 8 Steps your ASC Must Take to Prepare for ICD-10

ICD-10 is coming, and it won’t wait for your ambulatory surgery center (ASC) to get prepared. In fact, we’ve all had ample time to prepare. But due to frequent delays in implementation, and the massive amount of time and money it would take to implement on an individual level, most of the healthcare community has put it off.

In order to get your center prepared, we have compiled insights on the 8 critical steps your ASC should take to prepare for ICD-10.

Complete the form to download the white paper: