The role of each and every medical provider is to provide quality health care to the patients. Therefore, it is vital as a medical care provider to be very proactive in order to curb health care problems before they become very prevalent. When you become proactive as a medical care provider by measuring key metrics as well as tracking all the changes, then you will be able to prevent further loss of revenue as you identify all the areas that require improvement. There are several methods of improving the revenue cycle of your project. These key metrics that medical care experts can use to measure their day to day financial health practices include the following:
- Accounts receivables: This is the measure of how long it will take for any service to be fully paid by all the responsible parties. This calculation will be based on the outstanding money depending on the average daily charge of the practice. By this, you will be able to account for the volume thus know how the billing department is responsible for collecting the debts.
- Percentage of accounts receivable greater than 120 days: This is the measure of the total practice’s capacity to get paid all the dues in a timely and efficient manner. This is usually a percentage representing the total amount of receivables that are older than 120 days of the current total receivables. This is an excellent choice key metric for evaluating percentage of accounts receivables within a period of 120 days.
- Adjusted collection rate: This is also known as net collection rate is measures the practice’s effectiveness in terms of collecting all the legitimate reimbursement. The figure collected shows how much revenue have been lost as a result of factors such as untimely filing, uncollectible bad debt and other forms of non-contractual adjustments.
- Denial rate: This is the percentage of claims that have been denied by the payers.