Identifying KPIs that Improve Your Revenue Cycle Performance

As a medical facility operating in a highly competitive industry, tracking the right Key Performance Indicators (KPIs) to ensure success is essential. KPIs can help you understand your revenue cycle performance and identify areas for improvement. This blog post discusses some of the most important KPIs to track for improved revenue cycle performance.

Understanding the Revenue Cycle

Before diving into the KPIs, let’s first take a moment to understand the revenue cycle and why it’s so important. The revenue cycle refers to the process of collecting revenue from patients and insurance companies. The process starts with scheduling appointments, verifying insurance, and ends with collecting payment.

A well-managed revenue cycle ensures timely and accurate payments, reduces the risk of claims denials, and ultimately leads to increased profitability for the medical facility.

Key Performance Indicators (KPIs) to Track

Days in Accounts Receivable (AR)

Days in AR measures how long a medical facility can receive payment after delivering services. The longer it takes to receive payment, the longer it will take to generate revenue. Tracking days in AR can help identify any bottlenecks in the revenue cycle, such as slow payment processing or claim denials.

Clean Claims Rate

The clean claims rate measures the percentage of claims that are processed without errors or rejections. A high clean claims rate indicates an efficient billing process that minimizes the need for follow-up or claims resubmission.

Claim Denial Rate

The claim denial rate measures the percentage of claims rejected by insurance companies or other payers. A high denial rate can be an indicator of issues with coding or billing errors, which can result in delayed or lost revenue.

Net Collection Rate

The net collection rate measures the percentage of revenue collected after accounting for adjustments and denials. A high net collection rate indicates an efficient billing process that maximizes revenue collection.


Tracking KPIs is critical for improving revenue cycle performance in a medical facility. By focusing on the right KPIs, such as days in AR, clean claims rate, claim denial rate, and net collection rate, medical facilities can identify areas for improvement and optimize their revenue cycle performance.

At PCS, we understand the importance of tracking KPIs to improve revenue cycle performance. Our team of experts has years of experience in the field, and we use state-of-the-art technology and tools to provide tailored solutions to our clients. Contact us today to learn more about how we can help your medical facility with its billing needs.

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