Unit days in accounts receivable: a management tool

Area of Science:

• Healthcare Administration
• Financial Management
• Medical Billing and Revenue Cycle Management

Background:

• The statistic "Days in accounts receivable" is a widely recognized metric for evaluating overall departmental efficiency in patient accounts management.
• Existing metrics primarily focus on aggregate departmental performance, potentially overlooking individual contributions and specific bottlenecks.

Purpose of the Study:

• To introduce and validate the application of "unit days in accounts receivable" as a performance metric for individual components within a patient accounting department.
• To demonstrate how this metric can enhance the analysis of efficiency at the individual file and representative levels.

Main Methods:

• The study proposes adapting the established "Days in accounts receivable" calculation to a unit-based level within the patient accounting workflow.
• This involves tracking and calculating the average time accounts remain outstanding for specific units or individual representatives.

Main Results:

• The calculation of unit days in accounts receivable enables the application of efficiency evaluations and measurements to individual patient accounts and representatives.
• This metric allows for the alignment of individual employee goals with departmental objectives, fostering a more participatory performance management approach.

Conclusions:

• Unit days in accounts receivable serves as a valuable tool for patient accounts managers to analyze overall accounts receivable performance.
• Implementing this metric empowers individual employees by providing measurable goals and objectives, contributing to improved departmental efficiency and revenue cycle management.