Key Revenue Cycle KPIs Every Practice Should Be Tracking
Tracking KPIs gives practices measurable insight into how efficiently services rendered convert into cash collected. Without consistent monitoring, practices commonly face:
Rising denial rates without clear causes
Delayed payments disrupting cash flow
Missed revenue from unworked claims
Increased compliance risk
Difficulty forecasting financial performance
Net Collection Rate (NCR)
Measures how much of allowable revenue is actually collected. A healthy benchmark is **95–99%**. A low NCR may signal unappealed denials, underpayments, or poor contract management. This is arguably the single most important metric for understanding billing effectiveness.
Days in Accounts Receivable (A/R)
Tracks average time from service to payment. The target is **30–40 days or fewer**. Higher figures point to submission delays, ineffective follow-up, or incomplete documentation. Rising A/R days are often the first sign of deeper billing problems.
Denial Rate
The percentage of claims denied by payers. Strong practices keep this **below 5%**. Common causes include coding errors, eligibility issues, and documentation deficiencies. Tracking denial rate alone isn't enough — you need to understand the reasons behind each denial.
First-Pass Resolution Rate
Measures claims paid correctly on first submission without rework or resubmission. A high rate reflects accurate coding and clean submissions. A low rate increases costs and delays revenue, requiring staff to chase payments instead of supporting patients.
Charge Lag
Time between service delivery and charge submission. Best practice is **1–3 days**. Longer lag risks missed filing deadlines and lost charges entirely. This metric is especially important for practices with multiple providers or locations.
Clean Claim Rate
The percentage of claims submitted without errors. Higher rates reduce denials, delays, and rework. Low rates often stem from documentation gaps, outdated payer rules, or inconsistent coding practices.
A/R Aging Breakdown
Monitor balances across aging buckets to identify at-risk revenue:
0–30 days — Current and expected
31–60 days — Requires attention
61–90 days — Active follow-up needed
90+ days — At risk of becoming uncollectible
High balances in older buckets signal claims that may never be recovered without immediate intervention.
Cost to Collect
Measures the expense per dollar of revenue collected, including staff, billing tools, and technology. An elevated figure suggests inefficient workflows or excessive denial rework. This metric helps practices evaluate whether their billing operation is cost-effective.
Tracking KPIs Alone Isn't Enough
Data requires consistent review and action. Generating reports is only valuable when the numbers lead to changes in process, training, or workflows. The goal is analyzing trends and implementing corrective strategies — not merely reporting figures.
How JARALL Helps
Our KPI-driven approach to revenue cycle management includes:
Revenue cycle dashboards — Clear visibility into practice performance
Denial and payer trend analysis — Identifying patterns across claims data
A/R performance monitoring — Tracking aging and follow-up effectiveness
Documentation and coding feedback — Practical recommendations for improvement
Actionable insights — Turning data into decisions that improve revenue
Conclusion
Without tracking the right metrics, practices risk operating blindly and leaving revenue uncollected. The practices that consistently monitor, analyze, and act on their KPIs are the ones that build predictable, growing revenue cycles.