Analytics and metrics are more important than ever in the healthcare setting. These properly maintain accounts receivable (AR) in medical billing. For an accurate AR in medical billing, you need to measure, track, and manage your AR effectively. The first step here is to identify key metrics and closely track them to enhance your healthcare facility’s business performance. A data-driven approach will make it easier to obtain and interpret information so you can make informed decisions. Here are five key metrics to keep an eye on:
Percentage of your AR greater than 120 days
It’s the amount of Account Receivables older than 120 days. It is an indicator of whether your insurers and patients are paying on time. An AR beyond 25 percent may indicate claim denials, follow-up issues, or inefficient payment processes for patients.
Days in AR
Accounts receivable in medical billing measures how long it takes for specific parties to pay for a service. The outcome usually varies by payer and specialty, but anything longer than 50 days is a cause for concern.
Denial Rate is the percentage of claims that payers deny. It can give you insights into the efficiency of your claims process. If the denial rate is higher than 10 percent, you’ll need to investigate your RCM process and improve it from eligibility and coding to billing.
Net collection rate
This metric measures how well you collect legitimate reimbursements. It’s a gauge to see how much you’re losing in revenue because of untimely filing and uncollected debt. If your net collection rate is lower than 95 to 100 percent after write-offs, it means you’re doing poorly.
First-pass acceptance rate
The FPA rate is the percentage of claims paid after submitting the first time. A low FPA rate means you should pay attention to your insurance verification, billing, and coding processes for an effective RCM process.
Being proactive in your accounts receivable and medical billing management overall will prevent costly problems before they occur. It will also increase your profits and ultimately help you achieve your goal of delivering the highest quality of care.
We at PLUTUS HEALTH offers a team medical billing and AR Experts that understand denials specific to your location, making identification, analysis, and prevention of denials much easier. Daily tracking of current denials and pushing back to insurance within 48hrs makes a massive difference on your AR and collections. Get in touch with our experts!