Numbers, as they say, don’t lie. So if you want to improve your practice’s revenue, you need to start looking at the numbers.

Managing your practice’s performance only with perception paints an inaccurate picture and could lead to ineffective strategies and decisions. However, numbers can be overwhelming. So to make data analysis more manageable, you need to use key performance indicators (KPIs) to translate cold, hard numbers into quantifiable metrics that give you a better overview of how well your practice is meeting its goals and targets.

Top Medical Billing KPIs

1. Aging Claims

It’s essential to monitor and measure your account receivables (A/R), including their pendency period. Doing so gives you an idea of how much money you are yet to collect and how long it usually takes you to get paid.

Industry benchmarks dictate that high-performing medical billing departments collect payments within 30 days or less. Meanwhile, average performers usually take 40-50 days, and those that take 60 days or more are considered below average.

Too many aged claims can lead to poor cash flow and hurt your bottom line. A sophisticated medical billing platform, like billrMD, doesn't just allow you to monitor your A/R but it also gives you the tools to fast track claims reimbursement so you can get paid on time and in the right amount.

2. Provider Productivity

Tracking provider productivity is especially useful for practices with multiple physicians on their roster. This indicator gives you a glimpse of the providers bringing in more patients and revenue. In other words, the ones who are pulling their weight.

Measuring provider productivity may look different for each practice. Metrics could differ depending on specialty, size, location, and other variables. However, the following metrics could help you decide on which KPI to focus on:

• Efficiency metrics
• Number of visits
• Billed hours
• No-show rates
• Wait times
• Total revenue
• Patient satisfaction metrics
• Return rates
• Patient feedback
• Referrals

3. Appointments Per Month

Tracking appointment numbers on a month-to-month basis gives you a better understanding of your monthly revenue. It helps you identify which months are the most and least profitable.

Knowing the number of appointments per month will also help you prepare for your busiest seasons. This data allows you to see obscure appointment trends and how they develop, enabling you to recalibrate your staffing, marketing, patient engagement, and retention efforts in a more targeted manner.

4. Revenue by CPT Code

Have you ever wondered where your profits are coming from? There’s no better way to find out than to track your revenue by CPT code.

It’s crucial to know which services you are offering bring in the biggest percentage of your profits. Not only will it give you a better idea of what CPT codes to use more, but it will also allow you to position your practice as a trusted expert on a specific kind of treatment or procedure.

5. Comprehensive Billing Summary

To get a bird’s eye view of your entire revenue cycle, you should track every detail of your practice’s financial performance. That’s why billrMD allows you to generate a detailed, comprehensive billing report, including a payer payment summary.

When you have a system in place to gather data on what you're being paid, when the payments are made, and who the payer is, it’s easier to develop steps to increase collections and your revenue.

Perhaps your primary motivation for becoming a physician or opening up your practice is to provide the best possible care to patients. However, you should also keep an eye on the business operation side of your practice to remain profitable and continue to help people.

It’s vital to stay on top of your operational, productivity, and financial performance to ensure that every area in your practice is running as efficiently as possible.