With the advent of modern practice management software, there is no limit to the data your practice can measure.
Unlimited data, however, can be overwhelming. It’s better and more useful to focus on key performance indicators (KPIs). “Just throwing more data at caregivers—we hear routinely that’s not going to be helpful,” says Brian Lawrence, Chief Technology Officer at Hill-Roms Holdings Inc. Instead, it’s important to ask: “What can we learn from that data?”
First, decide exactly which reports and statistics are the most meaningful. Bottom-line stats like ‘net collection percentages’ can show the overall health of your practice. Your administrator and billing staff may also need to focus on a clean claims rate or how long it takes to capture demographics for a new patient.
In this post, we name some of the most important billing and collections KPIs. By looking at each stage of the revenue cycle, you can easily spot where you need the most help. Don’t get discouraged — even if you track just a few of these suggested metrics, you’re on your way to making tangible improvements.
Remember: If you don’t track it, you can’t measure it. And if don’t measure it, it’s that much harder to control the financial health of your practice.
Keeping an eye on your KPIs is not a ‘one-and-done’ task. Run regular reports to watch your financial health on an ongoing basis. Break these up by the types of reports you need to see on a daily, weekly and monthly basis:
Daily Metrics
* Review daily activity and net production (charges – payments – adjustments + refunds, etc.)
* Quantify any billing backlog
* Balance over-the-counter collections by source (cash, checks, remittance received, credit cards, etc.)
Weekly Metrics
* Quantify payment posting backlog
* Quantify collection backlog
* Quantify underpayments
Monthly Metrics
* Review outstanding A/R (billed, value and days)
* Review monthly production by doctor
* Review denial activity during the month
* Review reverse aging of payments (track which billing month received payments pertain to)
It is possible to run a thriving, financially strong medical practice. Even a limited adoption of tracking and measuring KPIs can yield real results.
Remember:
* The patient experience starts at the front desk – loyalty and good collections depend upon excellent execution here.
* Select KPIs relevant to your practice — and monitor them often.
* Perfect your reports, and use them daily/weekly/monthly to manage your practice.
* Enable mobile/remote monitoring of your practice.
* Automate functions wherever possible
* Outsource non-core functions wherever possible
What KPIs mean the most to you? Do they help you get a better grip on workflows and processes at your practice?
Brian Foster contributed to this post.
