5 Revenue Cycle KPIs Every CFO Should Track Right Now
From ImagineSoftware's article 5 revenue cycle KPIs every CFO should track right now published by Becker's Hospital Review
The shift to value-based care and patient financial responsibility is putting more pressure on providers to focus on the efficiency of their billing processes. Key Performance Indicators (KPIs) will help you both understand the strengths and weaknesses of your business and identify areas for improvement. Here are five KPIs every CFO should be tracking right now to efficiently allocate resources and improve revenue cycle workflows.
Total Charge Lag
This KPI is calculated by subtracting the date of service by CPT code and total number of CPT unit of service codes billed from the total number of days from revenue recognition date. It measures your charge capture workflow efficiency and identifies cash delay. Seven days is typically the threshold for performance and anything past thirty days is a major red flag. Holding charges can delay payment and potentially be lost to capture. A high charge lag can be caused by unclear or missing documentation and coding inefficiency. In terms of process improvement, consider reporting your charges by both physician and service. This will give you the ability to identify and close gaps between services delivered and any corresponding backlogs. Also, consider your staff productivity. Regular training or even outsourced coding can improve coding efficiency.
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