The explosion of the RCM software market in recent years has led to worries about keeping patients’ data secure. One speaker at HIMSS19 even went so far as to say that cybersecurity should be a revenue cycle management key performance indicator (KPI).
But cybersecurity isn’t the only KPI you should pay attention to. That’s why we’re presenting three healthcare industry standard KPIs you need to be measuring.
Curious about how to use KPIs when determining the success of your RCM strategy? Keep reading for the answer to that question plus find out how medical lending can help improve the health of your revenue cycle (RC).
Accounts Receivable Days
The number of days a bill stays in accounts receivable indicates the efficiency of your RCM strategy.
To calculate this value, you need to know your net AR days and the average daily net patient service revenue. Divide net AR days by average daily net patient service revenue to find the AR days KPI.
The ability to convert revenue from patient services gives insight into the financial health of your revenue cycle.
For this KPI, you need to know the total patient service cash collection amount and the average monthly net patient service revenue. Divide the former by the latter to determine cash collection as a percentage of patient services revenue.
Cost to Collect
Cost to collect shows the level of efficiency and productivity at which your revenue cycle is operating.
You can calculate this value using the total revenue cycle cost and the total patient service cash collected. Divide total revenue cycle cost by total patient service cash collected for insight into RC operating productivity.
How does Medical Lending Improve KPIs?
Healthcare loan programs connect patients with banks that offer low-interest financing for medical debts. They’ve been shown to decrease AR days by up to 2.5 days. And cash collection improves, too, since providers are paid upfront and in full for services rendered.
Finally, your cost to collect will decrease because medical loan software can be implemented at no cost to the provider. Collected patient-pay cash increases while total revenue cycle cost remains the same, leading to a smaller cost to collect.
Are you searching for medical lending software to help improve the revenue cycle at your hospital or practice? Learn more about Epic River’s patient financing program or request more information about our services.