5 KPIs that require revenue cycle managers' attention.

Area of Science:

• Healthcare Management
• Financial Performance Analysis
• Operational Efficiency

Background:

• Effective revenue cycle management is crucial for healthcare organizations' financial sustainability.
• Identifying key performance indicators (KPIs) is essential for monitoring and improving revenue cycle operations.

Purpose of the Study:

• To identify the most critical key performance indicators (KPIs) for assessing healthcare revenue cycle performance.
• To provide revenue cycle leaders with a focused set of metrics for clear performance insights.

Main Methods:

• Analysis of revenue cycle management best practices.
• Identification of core financial and operational metrics relevant to healthcare revenue cycles.

Main Results:

• Five key performance indicators provide the clearest insight into revenue cycle performance:
• 1. Cash ratio
• 2. Medicare-billed accounts receivable (A/R) over 30 days as a percentage of total Medicare A/R
• 3. Third-party aging over 90 days
• 4. Bad debt expense
• 5. Customer experience

Conclusions:

• Focusing on these five specific KPIs enables revenue cycle leaders to gain the clearest understanding of their organization's performance.
• These indicators cover financial liquidity, aging receivables, payer-specific performance, uncollectible debt, and patient satisfaction.