There’s never been a time when hospital business offices collected too much money and had to dial back their efforts (although that would be nice). So, the significant pressure RCM teams are under today is nothing new. What is new is how quickly it has escalated. Denials skyrocketing. A/R piles growing. Laws and regulations changing. Seemingly all at once.
If you work in healthcare RCM, you can feel a new pace to the industry. The more challenging part is quantifying it. These five questions, drawn from industry benchmarks, offer a snapshot of your revenue cycle performance. It should only take a minute or two of your time, but a few “yes” answers should get your attention.
1. Are your days in A/R consistently above 50?
☐ YES ☐ NO
HFMA identifies 30–40 days as ideal.
2. Are you losing more than 3% of net patient revenue to denial write-offs?
☐ YES ☐ NO
An HFMA survey found hospitals now lose an average of 4.8% of net revenue to denials.
3. Is your cost to collect above 4% of net patient revenue?
☐ YES ☐ NO
The industry benchmark is 2%–4% of NPR.
4. Is more than 20% of your A/R greater than 90+ days?
☐ YES ☐ NO
HFMA recommends less than 20%.
5. Is your clean claim rate below 95%?
☐ YES ☐ NO
Best-in-class organizations target 98%.
If you answered “yes” to any of the questions above, you’re not alone. In today’s high-speed RCM landscape, just keeping up is a challenge. Getting ahead is even more so. While five top-line questions can only tell you so much, in an environment where every dollar of revenue collected (or not) counts, they can tell you enough to know it's worth digging deeper.
Meduit's Comprehensive Business Office Assessment goes beyond a checklist to deliver a data-driven evaluation of your organization’s revenue cycle performance, measured against industry standards, with tailored recommendations for improvement. This one’s an easy Yes.
Contactus@meduitrcm.com to get your assessment.