Medical billing performance metrics

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• Medical billing performance metrics

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Medical billing performance metrics
If you are a medical practitioner are feeling
overwhelmed adjusting with medical billing
performance metrics the first thing to do right
now is to focus on quality coding and track KPIs
which will heavily impact your financial
performance. The current billing landscape is
not a road for many medical practices to
navigate. The transformation of value-based care
and rising patient responsibility makes the
day-to-day management more challenging. Time has
come to critically measure the financial health
of your medical practice and if your staff is
falling short in medical billing performance
metrics. Performance metrics such as the Key
Performance Indicators (KPIs) help doctors and
management to understand the strengths and
weaknesses of their revenue cycle and help
strengthen future decisions. Here are valuable
tips to manage your medical billing performance
indicators Collection rate measurement The
collection rate is the measure of the facilities
effectiveness in collecting all valid
reimbursements. This includes the payers who the
practice has contracted with, and to confirm the
difference between standard fee and payer
reimbursement rate.
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Medical billing performance metrics
Accounts Receivable Days Accounts receivable days
(A/R) is the foremost industry standard for not
only measuring key medical billing performance
metrics it also measures the days amounts owed to
the practice by insurance payers, patients, and
third parties will take to be paid. For
instance, if you treat or meet a patient today,
days in A/R represent the average number of days
it will take before you are fully paid for the
services given. The industry benchmark is
normally 30 days but is subjected to change by
the type of specialty and payer mix. Overall, it
is one of the best medical billing performance
indicator to monitor and provide insight on your
revenue cycle. Aging Accounts Receivable Aging
A/R analysis is an evaluation of the actual
accounts receivable aging to the estimated
accounts receivable aging. Inconsistent
percentages indicate an unreliable policy in how
insurance payer and patient collections are being
performed. Remember that days in A/R and A/R
aging validate a practices ability to quickly
turn around A/R and collect all money due.
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Medical billing performance metrics
In conclusion, understanding the importance of
your collection rate, along with days in A/R, and
aging accounts receivable aging is just the
beginning to uncovering a breath of data that
will put you on the path of a perfect medical
billing performance.