Improving ASC KPIs: Collections, write-offs, and 3 overlooked credit metrics
Written by Angela Mattioda, Vice President of Revenue Cycle Management Services, Surgical Notes
ASCs that effectively implement processes to monitor and analyze key performance indicators (KPIs) strengthen their center's revenue cycle performance. This is made possible by recognizing problems that negatively affect revenue and profits. Once identified, ASCs can apply data-driven changes that stop and reverse negative trends.
This fifth and the penultimate article in a series about improving ASC KPIs focuses on percentage of collections for cases greater than 90 days, write-off percentages, and three related — and often overlooked — metrics: credit balance, refund trends, and collection agency referrals. Note: Access the previous article on clean claim percentage, denial rate, and denial reason trending.
Why you should monitor these KPIs
While percentage of collections for cases greater than 90 days is not a KPI typically tracked by ASCs, this metric has great value. Many centers — and some billing companies — will choose not to pursue collections for cases with outstanding payments greater than 90 days. The rationale: Labor-intensive work is often involved in achieving successful collections of such payments, so rather than continuing to work to address these factors and secure payment, it can be easier to ignore this collections bucket and focus on easier collections. The problem with this approach is that it leaves potential cash — possibly significant amounts — that could be captured sitting on the table.