Healthcare CFO Key Performance Indicators (KPI) Survey

1. Top 5 KPIsHealthcare CFOs Need To Measure

2. 1. Days Cash On Hand Days Cash on Hand is an indication of a hospital’s liquidity. It’s good to have cash at hand when something goes wrong, but having too much is also an indication of improper use of resources. it is important that we distribute our current resources to areas that can generate more revenue in the future. Total operating revenues (Cash and cash equivalents + Long-term investments) *365 Handpicked ! Your Revenue Cycle's Fitness Report .

3. 2.Operating Profit Margin Percentage Operating margin is the amount of revenue a company makes after paying for all of it’s operational and overhead costs. Operating margin excludes taxes and interest paid on debts. Currently healthcare CFOs are looking for new ways to generate revenue as operating margins have declined across the healthcare industry. Total operating revenues (Total operating revenues – Total operating expenses)    *100 Handpicked ! Keep growing your hospital's revenue .

4. 3.Net Days In Accounts Receivable Days in Accounts Receivable is the average number of days a practice takes to collect its payments. Net days in A/R is calculated by dividing net A/R by Average daily net patient service revenue One way of managing AR is by using a tool that can automate and enable smooth workflow. Net A/R Average daily net patient service revenue Handpicked ! Revamping AR Process of a popular medical group .

5. 4. Cash Collection as a Percentage of net patient Services Revenue The idea of using this KPI is to determine whether an organization’s revenue cycle has the possibility to convert net patient services revenue into cash. Total collected patient service cash divided by average monthly net patient service revenue gives Cash Collection as a percentage of net patient services revenue. Total patient service cash collected Average monthly net patient service revenue Handpicked ! Make informed financial decision to improve profitability .

6. 5 .Claims Denial Rate Claims denial rate is derived as a percentage of claims denied. The total number of claims denied divided by the aggregate number of claims remitted gives Claim Denial rate. Claims denial cannot be avoided but a mismanagement of denied claims means lost revenue. Total number of claims denied Total number of claims remitted Handpicked ! Denial Analysis Fact Sheet Template .

7. Thank you Get More Revenue Toll-free: 888-571-9069 , 877-272-1572 Email: info@billingparadise.com Website: www.billingparadise.com