How can you optimize your practice's revenue cycle with RCM performance metrics?

2 Why are RCM performance metrics important?

RCM performance metrics are essential for assessing and improving revenue cycle performance. They can help you identify the root causes of revenue leakage and inefficiency, such as coding errors, billing delays, claim rejections, or patient non-payment. Additionally, metrics can be used to implement best practices and strategies to optimize revenue cycle processes, benchmark performance against industry standards and peers, track progress over time, and demonstrate value and accountability to stakeholders. In other words, RCM performance metrics are invaluable for understanding how to improve your revenue cycle.

3 How to choose RCM performance metrics for your practice?

When selecting RCM performance metrics for your practice, you should consider factors such as alignment with your mission and objectives, relevance to financial performance and patient satisfaction, availability of data, comparability across different time periods and peers, and actionability. Your metrics should reflect aspects of the revenue cycle that you can influence and improve, be based on accurate and reliable data that you have access to, be consistent and standardized for comparison purposes, and be clear enough to inform decisions and communicate results.

4 How to measure RCM performance metrics for your practice?

To measure RCM performance metrics accurately and regularly, you should first define the formula, data sources, frequency, and target value for each metric, and document them in a clear and consistent way. Then, collect the data you need from your billing system, clearinghouse, payer reports, or other sources. After that, calculate the value of each metric using the formula you defined and compare it with your target value and previous values. Next, analyze its trends, variations, and drivers to identify the factors that contribute to its performance. Finally, report its value and analysis to your stakeholders using appropriate formats and channels.

5 How to improve RCM performance metrics for your practice?

Measuring your RCM performance metrics is not enough. To improve your revenue cycle performance, you need to review each RCM performance metric to evaluate how well you are meeting your goals and expectations, and plan the actions and initiatives you will take to improve its performance. Then, you should implement the actions and initiatives you planned, and monitor their execution and outcomes. Next, evaluate the impact and effectiveness of the actions and initiatives implemented, measure their results and return on investment, and learn from your successes and failures. Finally, repeat this cycle of measuring, reviewing, planning, implementing, and evaluating to continuously monitor and improve your revenue cycle performance.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?