Dashboards, Reports,Data:What do billing reports need to tell me?
Posted by Lin Dworshak on Tue, May 24, 2011 @ 02:13 PM
A simple Google search on health-care billing reports will offer a plethora of opinions of what reports are necessary, how much data to look at, in what format should you be looking at them and most importantly, what does it all mean?
Whether you perform your own billing or out-source it; you are only as healthy, successful and financially secure as your reports tell you. Thus, analyzing "billing reports" is escalated into the strategically critical column on your monthly list of "must do".
Someone has said........"One accurate measurement is worth a thousand expert opinions"
What is apparent to all practices is that MCR reimbursement is going down, operating costs continue to go up, and more compensation can only be achieved by more productivity. Practices with increased productivity have increased collections; increased collections translates to higher compensation.
REVENUE - COSTS = PROFITABILITY
This is not a new business model, it has been the key business model for any "business". And the "business" of health-care is no exception.
When considering key performance indicators, whether looking at MGMA best practices or using some other source; the truth is "you can't manage what you don't measure" The mantra of QIT remains valid. And the goals of your practice may drive what key performance indicators are important to you. They will also serve to provide you with evidence based management decisions.
In any practice however; three areas need to be measured: (1) revenue cycle (2) cost efficiency and (3) bottom line or net revenue per patient visit. Today we will consider revenue cycle reports.
Revenue cycle measures the ability of a practice to collect payment for services provided. So what reports are key to measuring revenue cycle?
Four metrics accurately collected will provide you with the most critical functions of the revenue cycle.
- Total AR (the volume of accounts that needs to be collected)higher is better
- AR greater than 120 days (the amount of aged AR and thus difficult to collect) lower is better
- AR days (the average amount of time to collect a charge)lower is better
- Net collection percentage (is the practice being paid appropriately/accurately) higher is better
It is also important to consider that a number is just a number until compared to meaningful benchmarking data....ie. MGMA surveys. Comparing to practice historical data is also useful as it will provide you with trends of the practice. Nor is data valuable in a vacuum. Data not used to improve/determine behavior of practice processes is wasted time and effort. The true value of data is in how it is used to improve performance/productivity/processes and monitor that activity.