Yield as a transformative measure in revenue cycle management
Many hospital executives find their organization’s revenue cycle difficult to measure due to the array of non-standardized and highly variable benchmarks, as well as key performance indicators (KPIs) that have been the industry’s standards. These factors make it challenging for providers to readily see opportunities, assess current resources, determine future purchasing needs, and identify priorities consistent with the organization’s mission.
Healthcare reform and other critical changes to the payer landscape, such as the proliferation of high-deductible health plans, have compelled hospitals to expand revenue cycle management (RCM) indicators in order to paint a more holistic portrait of fiscal performance. One such measure that can identify and drive positive financial improvement is yield.
Defined as cash collected/net expected reimbursement, yield is an indicator that expands beyond traditional accounts receivable (A/R) tracking mechanisms to provide a more comprehensive indicator of the effectiveness and success of the revenue cycle, while normalizing performance reporting.