The first step to reaching any goal is breaking up the process into smaller, more digestible goals. In revenue cycle management, this means setting measurable goals that quantify progress and point out areas for improvement. Analyzing financial health involves more than a quick look at your bottom line. Monitoring these key performance indicators (KPIs) provides a detailed picture of your facility’s financial performance, helping your team identify revenue leaks or billing inefficiencies.
Which KPIs Should You Track?
The best KPIs may not be the same for each facility, depending on individual goals, timelines, and resources. But, we always recommend that ASCs pay close attention to certain data points, such as:
- Unbilled cases
- Payment analysis by insurance class
- Case volume
- Revenue by specialty
- Gross and net revenue by case
Monitoring financial performance is a big ask for your billing team. Set them up for success, and choose metrics with the greatest impact on your financial goals. Laying the groundwork for your team will help them understand both long-term objectives as well as day-to-day steps they can take to boost facility profitability.
Make the Most of Your Billing System
The sentiment “technology makes life easier” rings true for ASC business offices. However, your cutting-edge billing system still needs a human eye to confirm it’s tracking the right metrics and operating as efficiently as possible. Without the right direction, your system will likely fail to measure and provide the most relevant data to help meet your business goals.
If you don’t take advantage of your system’s capabilities, your billing staff must dedicate more time to smaller tasks, shifting the focus away from larger, more crucial projects. In addition to comprehensive reporting, you should also use your billing system for:
- Scheduling & Eligibility Verification. Why struggle to find an opening when your billing system could do it for you? Some systems can even perform insurance verifications and determine patient responsibility.
- A/R Categorization. Your billing system can provide a detailed breakdown of outstanding A/R, including insurance claims, patient balances, and payment plan information.
- Stay Up to Date. Ensure changing fee schedules and new insurance contracts are updated and captured in your practice management system. This information is mission-critical for accurate billing that maximizes reimbursements.
Benefit From Informed Financial Decisions
When you place KPIs at the center of your business operations and align your billing team to these goals, success will soon follow. Even if you’re starting in the red, these goals can help you get back on track. Your team can use your custom KPIs to power data-driven decisions that will positively influence your facility’s billing efficiency and bottom line.
Putting the pieces of the billing puzzle together can feel overwhelming. With the help of your billing system and an ASC billing partner like in2itive, your team can leverage KPIs to improve current processes and forecast future growth. By understanding your facility’s financial performance, you can make better decisions to improve the financial health of your organization.
Need help finding the right KPIs? Reach out. We’ll discuss current challenges and future goals to help you choose the best metrics for your facility.