Keeping track of how your medical practice performs financially is a complicated but must-do task. Medical billing can help you achieve this to a certain degree, but there is much more that you can uncover from the data that passes through your system.
This is where medical billing KPIs come into play. With the help of these metrics, you can learn a lot more and make well-educated decisions that can help the growth of your medical practice.
What Are Medical Billing Metrics, And Why Do They Matter?
Key Performance Indicators (KPIs) are metrics that can help medical institutes to track their performance. These allow you to gauge the performance of the RCM, thus providing a better overview of the finances of the institute.
By tracking these medical billing metrics, the administration can improve the efficiency and the profits that the medical institute earns. When used correctly, these metrics can also act as an early warning system. This will also allow you to come up with better solutions and ideas that can positively affect the financial; health of your institute.
A Few Medical Billing Metrics That Matter
There is a wide range of medical billing metrics that can provide you with different information about your medical practice. However, tracking each metric can be daunting and time-consuming. This is why you should select just a few of the KPI metrics that align with your goals and keep track of them instead of all. So, here are 4 KPI metrics that matter to any medical practice.
- Days In Receivables Outstanding
This is a good indicator that shows how much time it takes for your institute to turn receivables into cash. To get this value, you must divide total current receivables by the average daily charge. Then, remove your credit balance. Finally, calculate your average daily charge depending on your chosen period.
- Collection Rate
You can get the net collection rate by dividing the total payments by the total allowed charges. With this metric, you can get a clear picture of the share of the collected reimbursements. When this value gets low, it can lead to difficulties when filing claims.
- Denial Rate
The percentage of claims denied by payers is what is depicted by the denial rate. When this value gets low, the better it is for the cash flow of your institute.
- Missed Appointments
When your institute is faced with frequent cancellations or no-shows, it can impact your finances badly. Also, if you keep close track of this KPI metric, you will be able to identify patterns, which will allow you to reduce gaps in your schedule.
KPI metrics tracking is a proven method of raising the financial status of your medical practice. So, make sure to select the most suitable KPIs metrics and track them to get a better overview of the finances of your business. If you are looking for medical billing services or consulting about KPIs, contact us at Invoisync.
