It goes without saying that measuring a medical practice’s revenue cycle management is essential to the ongoing success of a practice.

But it takes more than measuring revenue performance to ensure the success of your medical coding, billing and collections. Measuring revenue potential also is a critical component that many practices can miss in the overall equation.

Let’s begin with revenue performance. HFMA recently updated the MAP Keys for Physician Practice Management, utilized by physician practices, hospitals and health systems to measure performance, apply evidence-based strategies for improvement and perform to the highest standards. These keys were created by healthcare leaders and “set the standard for revenue cycle excellence – for your organization and for our industry,” says the HFMA MAP site.

These indicators can be used to track revenue performance over time and compare performance with peers:

  • Percent of Patient Schedule Occupied
  • Point-of-Service (POS) Collection Rate
  • Total Charge Lag Days
  • Professional Services Denial Percentage
  • Aged A/R by Payer Group as a Percentage of Outstanding Total A/R
  • Aged A/R as Percentage of Outstanding A/R
  • Primary Physician Practice Operating Margin Ratio
  • Specialty Physician Practice Operating Margin Ratio
  • Net Income/Loss Per Primary FTE Physician
  • Net Income/Loss Per Specialty FTE Physician
  • Total Primary Physician Compensation as a Percentage of Net Revenue
  • Total Specialty Physician Compensation as a Percentage of Net Revenue
  • Practice Net Days in A/R
    The HFMA site further explains that “Key definitions were… validated by 158 hospital, group practice and multihospital system executives through a survey.”In conjunction with an experienced medical coding, billing and collections team that fully understands how they work, the HFMA web site details how the MAP Keys ensure revenue cycle management excellence by:
  • Tracking performance
    Doing so can help hospitals and health systems identify performance trends and set priorities for improvement.
  • Working with your vendors to use the MAP Keys
    Vendors can help leverage the use of the MAP Keys to improve business intelligence and revenue cycle process management.
  • Sharing HFMA’s MAP Keys with peers
    The greater the number of healthcare providers that adopt the MAP Keys, the greater the circle of organizations able to compare performance and best identify market-based trends.
  • Continuing to look to HFMA for KPI advances
    HFMA is committed to refining and expanding key performance indicator (KPI) activities. Those organizations that continue to follow HFMA in these efforts will be best positioned to make use of strategies for metric-driven performance improvement.
    The quality and integrity of your revenue cycle management company are critical to how well these keys are implemented and leveraged to your advantage.
    Hand in hand with revenue performance is discovering and optimizing your revenue potential. It takes a benchmarking tool, the MedRev Index designed exclusively by revMD.com, to fully comprehend each practice’s unique revenue potential and optimize their medical coding, billing and collections process.
    MedRev Index uses a formula based on a set of key indicating revenue management standards that, when input is provided, produces an index actionable number. A practice’s full revenue potential can be revealed in just moments. This algorithm-driven index serves as a benchmark that compares revenue performance with others in each medical specialty and generates a meta average indicating revenue cycle management optimization.
    Uncovering that number is the first step. Doctors are then connected to an entire cadre of support to increase their bottom line on average 19 percent in most cases and:

        • Further demonstrates full revenue cycle practice potential
        • Develops a revenue cycle management plan for success
        • Empowers practices to ensure they achieve it

    revMD.com is the results-proven alternative for healthcare revenue cycle management, with a niche specialization in medical coding and billing that generates unprecedented results and builds profitable medical practices. Leveraging a history of industry wide success spanning 25 years, revMD.com partners with medical practices throughout the U.S. to optimize revenue for hospital based and practice based physicians. For more information, visit www.revmd.com.

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