The trends in revenue cycle management for short-term acute care hospitals for the past five years (FY06-10) are not encouraging.
A basic role of hospital revenue cycle management is to measure how well a hospital maximizes the amount of patient revenue billed and how quickly it collects that revenue. An effective way to analyze patient revenue billed is to consider trends in the percentage of gross revenue written-off versus collectible or net revenue. The speed at which the hospital collects net revenue can be analyzed by looking at trends in the percentage of accounts receivable (A/R) reserved for write-off versus collectible as well as the ratio of net A/R days outstanding.
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