Why Your Healthcare Revenue Cycle Dashboard Is Key to Success
Imagine walking into your bank and telling the teller that you have no idea how much money you have in your bank account. That it’s essentially what you say to your providers if you need a clearer picture of where your healthcare revenue is coming from and going to, including payment status.
With a healthcare revenue cycle dashboard, you can keep track of all payments and claims information in real time, leading to better claim and collection management and more robust financial performance for your healthcare organization.
Keep reading to learn more about why healthcare revenue cycle dashboards are the key to success.
What is Healthcare Revenue Cycle Dashboard?
A healthcare revenue cycle dashboard is a software program that provides an overview of a healthcare organization’s financial and operational performance.
In short, it shows you how much money you bring in versus how much you spend on things like patient care.
It can also provide insight into areas for improvement and help your business plan for future growth. Healthcare revenue dashboards are not just for hospitals. They are also helpful for medical offices, clinics, and other healthcare providers.
What are the stages of the revenue cycle in healthcare?
The healthcare revenue cycle is the process of billing, collecting, and managing payments for medical services. There are five stages in this process:
- Initial interaction with a patient results in a service being delivered.
- Billing for the service.
- Collection of any payment for the service.
- Management and reconciliation of any out-of-pocket expenses incurred by the patient or other third parties.
- Invoicing patients or third parties for unpaid balances.
A healthcare revenue cycle dashboard can track these steps throughout an individual’s case so they know where their bill is.
Importance of Healthcare Revenue Cycle Dashboard
Following are some reasons why your healthcare revenue cycle dashboard is key to success.
1. It Helps You Understand Your Business
A healthcare revenue cycle dashboard helps you understand your business because it gives you a visual representation of your organization’s health and growth metrics. It is easy to see how things are going and where any issues may lie.
The dashboard can be displayed in many different ways, depending on what information you are interested in seeing.
2. It Improves Revenue Cycle Management
A healthcare revenue cycle dashboard is a tool that can help healthcare companies manage their revenue cycle.
These dashboards can help measure the efficiency of hospital departments and identify inefficiencies, which can then be corrected to improve the company’s bottom line.
Additionally, these dashboards may also help organizations understand why some patients are not paying their bills or why some patients are receiving bills from the wrong department. They allow hospitals to address these problems before they become too big to handle.
3. It Facilitates Decision Making
A healthcare revenue cycle dashboard can help facilitate decision-making. It is a tool that provides an overview of all the main components in the revenue cycle (chart below). The dashboard will help you see where your hospital is at in the revenue cycle and make decisions accordingly. You will be able to see your:
● Churn Rate: Churn rate is the percentage of customers that cancel their service each month. It is calculated by taking the total number of cancellations in a given period and dividing it by the total number of customers in that same period.
● Cost Per Discharge: Cost Per Discharge is the total cost incurred by a hospital to discharge a patient. It is calculated by dividing the expenses incurred by the number of discharges during a specific period.
● Collection Ratio: The collection Ratio is an essential metric for measuring the effectiveness of your revenue cycle management. It is calculated by dividing the total amount collected by the total amount billed.
● Days In Accounts Receivable (DAR): Days in accounts receivable (DAR) is a measurement used to gauge the efficiency a healthcare organization collects from its patients.
● Days To Collect on Past Due Accounts (DPDA): The Days To Collect on Past Due Accounts (DPDA) is a dashboard metric representing the number of days it takes to collect an account. It is calculated by dividing your total dollars in the past due accounts receivable by your real dollars in accounts receivable.
● CFO Tracking Code Assignment and Usage: The CFO Tracking Code Assignment and Usage tool can help healthcare organizations understand the money flow. For example, it can show where revenue should be coming in and how much is coming in daily.
4. It Enhances Communication Across the Organization
Any healthcare organization can use a healthcare revenue cycle dashboard, regardless of size or complexity.
It provides an efficient means for different departments within the company to communicate with each other and identify areas that need improvement. It also allows you to measure progress on your goals more efficiently and spot potential problems before they become more significant.
5. It Increases Efficiency and Effectiveness
A healthcare revenue cycle dashboard is a digital dashboard that helps increase healthcare providers’ efficiency and effectiveness.
The dashboard aims to provide providers with a comprehensive view of the entire revenue cycle, including patient admissions, inpatient services, outpatient services, and everything in between.
In addition, it provides helpful analytics for decision-making and performance measurement. With these insights, providers can make better decisions about managing their patient’s health needs.
In the healthcare industry, providers must comprehensively understand the revenue cycle. The healthcare revenue cycle dashboard does just that by providing transparency in various areas. This is an excellent way for providers to ensure their business is on track and stay ahead of any potential problems.