Revenue Cycle

Dashboard
Team One
Erin Frankenberger &
Michelle Wisniewski
HIA 408E

Key Performance Indicators

In order for a business to be successful, their
processes must be continuously monitored so to
gain insight into which aspects of the organization
need to be focused on for improvement

This measurement of success is done through the

use of key performance indicators (KPIs)

Key Performance Indicators

The KPIs that are monitored for a facility are geared
towards that specific facility, and therefore will vary
Based on industry standards, the top 5 revenue
cycle management KPIs include:
o
o
o
o
o

Adjusted Collection Rate

Days in Patient Accounts Receivable
Third-Party Aging Over 90 Days
Bad Debt Write Offs
Customer Experience

Key Performance Indicators

KPIs should be monitored weekly
Report formats may include excel databases,
charts, and graphs

These reports should also be approved and shared

with all pertinent management ranging from
supervisors to the CFO

Key Performance Indicators

Standard reports that may aid in the analysis of
monitoring and trending KPIs include percentage of
denied claims and denial reasons, denial trends by
payer, days in A/R, aged A/R, per visit data, payer
reimbursement comparison to contract, and payer
mix
These reports should include both current and
trended data

Adjusted Collection Rate

This rate reveals how much of the revenue
collection is impacted due to factors such as bad
debt or untimely filing
Adjusted Collection Rate can be measured using
the following formula:
[(practice payments - refunds) + (total charges - write offs)] x 100

Adjusted Collection Rate

Industry benchmark data for Adjusted Collection Rate
Best practice of greater than 99% (HFMA,
Southwestern Ohio, May 2012)
Best practice of greater than or equal to 97%
(Medscape, 2012)
Adjusted Collection Rate
Target Range
> 95% - 99%

Days In Patient Accounts

Receivable (A/R)
This rate represents the length of time it takes for
services to be completely paid by their responsible
parties
Days in Patient Accounts Receivable can be
measured with the following formula:
Net Patient Service Revenue
Number of Days in a Period

Days in Patient Accounts

Receivable (A/R)
Industry benchmark data for Days in Patient Accounts
Receivable (A/R)
Best practice of 37.7 days (Latour, 2013)
Best practice of 42 days (ECMC, Buffalo NY)
Days in Accounts Receivable (A/R)
Target Range
40 - 50 days

Third Party Aging Over 90 Days

This figure represents the trend of accounts receivable
collectability, thus measuring what is supposed to be
collected versus what was collected
Clear performance indicators will begin to show after 90
days. Thus, it is helpful to review billed A/R aged over 90
days from the patients discharge as a percentage of
total billed accounts receivable
Third Party Aging Over 90 Days can be measured with
the following formula:
Accounts in A/R > 90 days
Total accounts in A/R

Third Party Aging Over 90 Days

Industry benchmark data for Third Party Aging Over 90
Days
Best practice of 15 20% (HFMA, Southwestern
Ohio, May 2012)

Best practice of less than or equal to 20% (ECMC,

Buffalo NY)
Third Party Aging Over 90 Days
Target Range
15% - 20%

Bad Debt Write Offs

Bad debts are those accounts that were not paid
due to factors such as the uninsured and charity
care
Measures an organizations ability to collect self-pay
accounts and identify payer sources for those who
cant meet financial obligations
Bad Debt Write Offs can be measured with the
following formula:
Bad Debt Write Off
Gross Patient Revenue Service

Bad Debt Write Offs

Industry benchmark data for Bad Debt/Write Offs
Best practice of no more than 2% - 3% (HFMA,
Southwestern Ohio, May 2012)

Best practice of no more than 3% (ECMC, Buffalo

NY)
Bad Debt Write Offs
Target Range
< 3%

Customer Experience
This is a key component of the value-based pricing
mechanism for the Medicare DRG reimbursement
through the use the HCAHPS questionnaires which
provide a measurement of patient satisfaction.
Since patients and families are contacted within a
week of their discharge, the on-site experience,
which includes patient access and financial
counseling services, has a measureable impact on
the facilities value-based purchasing scores

Customer Experience
There are no industry benchmarks with which to
compare customer experience
The following key concepts should be reinforced to
improve customer experience
o Medaille Memorial Hospitals clinical teams will be free of unnecessary
charge capture burdens so they can address patient care and
documentation issues without distraction (Devendra Saharia, HFMA)
o Medialle Memorial Hospital will have trained financial counseling staff
equipped with the proper tools to help patients clearly understand their
financial responsibilities at the time of registration. (Devendra Saharia,
HFMA)
o Medaille Memorial Hospital will promote patient satisfaction by providing
patients with easy access to online payments. (Devendra Saharia, HFMA)

References
http://www.healthcarefinancenews.com/sites/heal
thcarefinancenews.com/files/resourcemedia/pdf/key-metrics-guide-final.pdf
May 2012. A Measure of Success: Using KPIs to
Accelerate Revenue Performance. HFMA
Southwestern Ohio. Received from
http://swohfma.org/presentations/PNC%20SW%20O
hio%20HFMA%20Presentation.pdf
Interview with Debbie Cudzillo, Vice President of
Revenue Cycle at ECMC, Buffalo NY

References
Revenue Cycle Management: A Life Cycle Approach
for Performance Measurement and System Justification.
2009 -2010 HIMSS Financial Systems Revenue Cycle Task
Force. March 2010. Received from
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&sou
rce=web&cd=9&ved=0CFgQFjAI&url=http%3A%2F%2Fw
ww.hfma.org%2FWorkArea%2FDownloadAsset.aspx%3Fid
%3D12909&ei=GqQxVJa6L8KBygTr2IGoDw&usg=AFQjCN
GwV1z5lTd0NoEfoEuq2DPUOE6obQ&sig2=GhExiPDpE9rdaMG2z24LA

http://www.centralohiohfma.org/presentations/HFM%20
Toolbox%20100608.pdf

References
Saharia, Devendra. 5 KPIs that Require a Revenue Cycle
Managers Attention. September 1, 2014. Received from
https://www.hfma.org/Content.aspx?id=24611
LaTour, K. M., Eichenwald Maki, S., & Oachs, P. K. (2013).
Health information management: Concepts, principles,
and practice 4th ed. AHIMA
Walker Keagan, D. (2012) Five key benchmarks that
could make or break your practice. Medscape.
Received from
http://www.medscape.com/viewarticle/765783

References
http://medicaleconomics.modernmedicine.com/m
edical-economics/news/user-definedtags/adjusted-collection-rate/use-net-collectionrate-gauge-fina?page=full