You’ve heard the old adage “cash is king.” Many believe it’s the sole indicator of financial health for their practice’s healthcare revenue cycle management. What may come as a surprise is that cash flow isn’t the only measure of medical practice billing profitability that reigns supreme.
You may know how your medical practice coding, billing and collections is doing at this moment, but are you aware of how well your practice should be doing? The unknowns surrounding Healthcare Reform, including reimbursement levels, ICD-10 and more, can cloud perceptions and contribute to growing confusion about your true revenue potential. To maximize practice profitability, it’s time to take a closer look at how financial performance can be taken to the next level and optimized.
It all begins with uncovering your MedRev Index.
MedRev Index is a dashboard tool that serves as a critical benchmark for physician revenue cycle management. This unique tool compares individual medical practice revenue performance, revealing key optimization metrics. Designed especially to meet the revenue growth goals of physician practices, the MedRev Index is a meta average for your specific practice and discipline that uses a formula and produces an index actionable number. Customized according to your geography and specialty, this algorithm-driven index serves as a benchmark, driving revenue optimization beginning with a revenue performance comparison with others in your specialty.
You’re then connected to an entire cadre of support to increase your 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
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Once your MedRev Index is determined, there are other key metrics that help to ensure peak performance for your healthcare revenue cycle management.
Practice Overhead Ratio: Measure overhead expenses by category as a percentage of total revenue collected, and then benchmark it to levels reported by peer practices in the same specialty to monitor the efficiency of the practice. Look for opportunities to reduce expenses if the overhead rate is higher than expected.
Net Collection Rate: This is the rate that measures allowable charges collected. On average, a well performing billing office should collect 95-97 percent of contractually collectible charges, including amounts written off. If your collection rate is lower and inconsistent, then dig deeper. Is a particular payer is the issue, or is it with your internal billing process?
Days in Accounts Receivable: Tracking days in A/R helps measure the effectiveness of the billing and collection process. As your days in A/R climb higher, it means longer delays in collecting from patients and insurance plans, which can put incredible strain on the practice.
Serving medical practices throughout the U.S., Scottsdale based revMD.com is experiencing record growth in the delivery of healthcare revenue cycle management services nationwide. revMD.com optimizes practice revenues and assures compliance for hospital and community based physicians. The firm is garnering attention industry wide for the MedRev Index, as well as other innovative products and services.
Now is no time to wonder if your medical practice billing and coding team has everything it takes to withstand the weight of this transition. Outsourcing your physician revenue cycle management with experts in this field is an important next step, and discovering your MedRev Index.
revMD.com is the results-proven alternative for physician revenue cycle management, with a niche specialization in medical practice coding and billing that generates unprecedented results and builds profitable medical practices. Not only is revMD.com the industry expert in physician coding, billing and collections, they are the professionals for seamless ICD-10 implementation. Leveraging a history of industry wide success spanning 26 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.