Q&A: Establishing billing and revenue cycle metrics

Q: What are some key metrics we should monitor for billing and overall revenue cycle performance?

A: Most leaders of high-performing hospitals agree that monitoring revenue cycle metrics is key to their success. Common financial metrics used in the revenue cycle include net days in accounts receivable, discharged not final billed, and aging accounts receivable. Tracking such metrics allow organizations to measure and monitor performance against set goals.

Each department within the organization has different metrics that they can use to contribute to the organization’s success. Some metrics must be monitored daily, whereas others can be monitored on a weekly or even monthly basis. With today’s technology, real-time monitoring can be used to place even greater importance on the consumer’s perspective as patient satisfaction plays a key role in the financial success of the organization. Such monitoring allows patient concerns to be identified and addressed immediately, which can potentially turn a negative experience into a positive one before the patient  leaves the facility. Successful organizations realize that these concerns—in addition to common financial metrics—push them to measure patient and employee satisfaction. Patient satisfaction surveys can help facilities identify room for improvement.

For more information see The Contemporary Guide to Patient Financial Services.