Improving Your Collections to Increase Revenue
How CPSC Members Manage and Improve Collections with the RCS Collections Module
Studies show that even a 1% increase in net collection rates can drive significant revenue increases. The CPSC RCS Collections Module puts that 1% increase within reach by helping you manage collections efficiently to make timely payments the norm for your organization.
It includes a set of four core reports detailing charges, payments, adjustments and other write-offs, all broken down by department, specialty or provider — and by payer/FSC. Data in these reports can be viewed and benchmarked for open and/or closed invoices.
Each of the four core reports in the RCS Collections Module focuses on a unique aspect of your collection records:
- Collections Analysis: Cash View
- Collections Analysis: Matched Invoice View
- Collections Analysis: (Matched) by Location
- Open Invoices > 12 Months
Use these four reports to see where you stand across departments and payers. Then, using our comparative data tools, rate your collections efforts against those of your peers and see what the top-ranking organizations are doing differently from yours.
This can help you identify actionable opportunities for revenue improvement. After implementing your chosen collections improvement policies, you can measure your ongoing performance using some of the methods described below.
How to Use the “90 by 90” Performance Measurement
The CPSC uses the 90-day net collection rate as a key measure to gauge relative revenue cycle performance. This rate is calculated on a matched basis for all invoices. RCS participants using our best practice recommendations achieve a rate of 90% or greater on this metric (hence the "90 by 90"), giving organizations like yours a fast track to increased revenue.
We have added an easy-to-use "exceptions highlighting tool" to the CPSC Matched Invoice View report. This lets you quickly highlight, identify and address areas where net collection rate performance at 90 days is either at, above or below expected performance. Our step-by-step instructions make it easier than ever to create this report.
Measuring A/R Performance
The Targeted A/R Performance Report uses comparative data from the CPSC RCS to evaluate the relative performance of your days spent in A/R as well as your time spent in A/R over 120 days (this can also be broken down by specialty). In the report, values are derived from aggregated data in the RCS while percentile benchmarks are created from revenue data submitted by your organization.
For ease of use, the report employs a simple green-dot, red-dot rating system to visually depict your group’s performance compared to CPSC benchmarks, along with the overall ranking of your organization's value. Knowing this information can help your group shift toward a streamlined A/R outcome.
Monitoring Patient Collections
Patient payment responsibility is skyrocketing, which makes it crucial that groups like yours measure and evaluate the performance of your patient collections. You can use the Matched Invoice View report to measure patient payment activity by developing a few calculations that will evaluate your group’s performance:
- Patient collection opportunity
- Patient load
- Patient collection efficiency ratio
The updated CPSC interface makes calculating patient collection opportunity simple. From there, you can evaluate the other two payment-related measures: patient load (the proportion of patient-related payment opportunity to total expected payment) and patient collection efficiency ratio (how much of the patient-related debt is actually being collected). Discover how this data has helped CPSC members increase revenue.