Improving ASC KPIs: Days in AR and AR greater than 90
Written by Angela Mattioda, Vice President of Revenue Cycle Management Services, Surgical Notes
When ASCs effectively monitor and analyze key performance indicators (KPIs), they can positively influence revenue cycle performance by quickly identifying problems that harm staff productivity, revenue, and profits. Once spotted, ASCs can apply data-driven solutions to right the ship.
This third article in an ongoing series about improving ASC KPIs focuses on two related metrics: days in accounts receivable (AR) and AR greater than 90. Note: Access the previous article on specialty and payer volume trending.
Why you should monitor these KPIs
Tracking days in AR is an effective means of identifying revenue cycle
issues. While this KPI is sometimes confused with "days to pay," the two figures are distinct and serve specific purposes in achieving
and maintaining a healthy revenue cycle.
Consider an ASC that only performs Medicare procedures. While days to pay and days in AR both monitor how quickly Medicare will pay for these procedures, days to pay is the indicator of how quickly the center receives the initial insurance payment. On the other hand, days in AR indicates how long it takes for the ASC to completely resolve the case from its AR. This includes patient billing and any secondary/tertiary billing.
Tracking AR greater than 90 days is also a powerful means of helping with early identification of problems. A value trending higher than usual may indicate payment delays and/or potential payer issues. A sudden increase with a specific financial class may also indicate a recoupment issue; higher volume of medical record requests, medical reviews, and denials; and other problems.
