Sharing Patient Accounts Receivable Metrics is important to any organization. It helps in maintaining health center cash flow with timely collections, minimizes bad debt and will improve the bottom line for the organization. Utilizing key performance indicators (KPIs) helps track progress toward strategic goals, drive clarity and facilitate alignment across all tiers of the organization. 

It is also imperative that staff understand the expectations and are held accountable to acceptable standards. By sharing KPIs you not only hold staff accountable, but give them the building blocks they need for a successful career. 

There are many KPIs that can be utilized to create a picture of the successes and challenges of your organization. They may include the following:   

1. Days In Receivables Outstanding (DRO): A predictor of billing efficiency. 
   • Total Accounts Receivable / Average Daily Charges
2. Gross Collection Ratio: Measures the percentage of total charges collected.
   • Total Payments/Charges 
3. Net Collection Ratio: Reflects the effectiveness of collections. 
   • Total Payments/ (Charges-Contractual Adjustments)
4. Denial Rate: Indicates the percentage of claims denied.
   • Total number of denied claims/Total number of claims submitted.
5. Cost Per Encounter: Measures the cost of billing per patient.
   • Total operational cost/total number of encounters
6. Receivables More Than 120 Days Pending: Tracks overdue payments.
   • Utilizes Accounts Receivable Aging
7. New Patient Numbers: Monitors patient acquisition.
8. Turnaround Time For A Refund: Measures the time taken for refunds.
   • Time of Refund Request – Time check is issued.

In order for KPIs to be effective they must be monitored and shared on a consistent basis. This will improve your billing processes both internally and externally, streamline your workflows and help set up clear payment policies and procedures in order to attain successful management of Accounts Receivable.