30 Dec What KPIs you need to monitor while outsourcing Medical Billing?
It’s essential to keep an eye on the back office and billing department of our medical facility. To calculate your finances, and whether your facility is meeting the set goals, it’s significant to keep a thorough check. The more effort you place towards enhancing your Medical billing department, the better for your revenues.
Let’s discuss the key performance indicators that every healthcare provider should keep in mind as they progress in the medical industry.
- Track Bad Debt
As an owner of a medical facility, one should be sure that not every patient will be able to make payments on time. It’s not enough only to remain mindful of this aspect but also to keep a check on the bad debt rate as a percentage. This is one of the essential KPIs of medical billing and has an immense impact on the revenue your business generates.
- Gross Collection Rate
You can calculate the GCR by dividing payments by charged invoices. This can come in handy to view your facility’s cash flow over a specific time and streamline the Revenue Cycle Management. This will also help you to assess future collections and give you a better idea of patients’ frequency, insurance providers, and various fees.
- Resolve Rate
Calculating and maintaining track of your organization’s resolve rate will give a glimpse into how well-equipped and disciplined your staff is. With a higher percentage, your facility remains on the safer end of billing. However, if you come across a low percentage, it is recommended that you seek expertise in medical billing and invest in enhancing the resolution rate.
- Denial Rate
If you find that the denial rate for your organization is high, then it could easily become one of the worst things for your business. For many healthcare providers, manual collections become increasingly difficult, and they have to resort to automated collection processes. It’s difficult to maintain claims and follow up in time. It also requires time and resources to manage claims. If your denial rate is high, you might want to look into outsourcing medical billing experts.
- Monthly Revenue
To better understand where you are generating the most revenue, it’s best to keep a check on funds coming through payors, clients, labs, tests, procedures, and other medical tasks. Then you proceed to check which client in the department is the most profitable and is generating the most revenue. Calculating your profit monthly would also give you an insight into what equipment to improve, such as medical supplies or machines. This could greatly improve your revenue and your reputation in the healthcare industry.
As a medical practitioner, you need to pay attention to details to maintain the standard of your care, which subsequently will have an impact on your revenue. The KPIs we discussed should be prioritized to keep a close eye on your organization. It’s essential to maintain a significant cash flow, generate revenue, and tempt patients to choose your medical facility. Having a disciplined and consistent medical billing department will only enhance the care you provide for your patients.