8 Keys to Healthcare Revenue Cycle Management Success

As a provider or practice manager, do you have a comprehensive and accurate picture of your practice’s financial health?  The Healthcare Financial Management Association organization developed, defined and prioritized the 8 MAP Keys with a group of industry leaders to standardize metrics for revenue cycle performance.  The keys allow providers and practice managers to compare progress to their goals as well as compare themselves to peers.  The keys can also be used in conjunction with the help of a revenue cycle management solution to devise a plan to improve the financial health of the practice.

  1. Practice Operating Margin – Measures the financial performance of a provider entity based on accrual.
  2. Practice Net Days In Accounts Receivable – Measures the number of days payment collection takes on services rendered.
  3. Practice Cash Collection Percentage – Measures revenue cycle management efficacy and predicts income by dividing patient cash collections by the net patient revenue.
  4. Total Physician Compensation as a Percentage of Net Revenue – Measures the ability to compensate providers in relation to revenue.
  5. Professional Services Denial Percentage – Measures payer denials and its impact on revenue flow.
  6. Point-of-Service Collection Rate – Presents an opportunity to ramp up revenue and increase collections.
  7. Total Charge Lag Days – Measures charge capture workflow efficiency and highlights the delays in revenue flow.
  8. Percentage of Patient Schedule Occupied – Identifies how to best utilize and maximize patient appointment slots to improve practice productivity.

More information:

http://www.hfmamap.org/mapkeys/keys/

http://www.healthcarefinancenews.com/news/8-keys-help-physician-practices-track-financial-performance

This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Although we attempt to provide up-to-date information, laws and regulations often change. We make no claims, promises, or guarantees about the accuracy or completeness of this document. For legal advice, please consult an attorney.