HFMA's Revenue Cycle Key Performance Indicators

Key Performance Indicators | FAQs | Sponsors

HFMA has worked with multiple stakeholders to develop a common set of revenue cycle key performance indicators (KPIs). Our purpose in developing these KPIs is to promote the consistent reporting practices and peer-to-peer comparisons needed to achieve significant revenue cycle performance improvement.

HFMA's KPIs

Follow the links below for comprehensive definitions of each KPI. Definitions include an associated value statement and purpose so as to best ensure consistent understanding of the use of the KPIs. 

Net Days in Accounts Receivable

Aged A/R as a Percentage of Billed A/R

Point-of-Service Cash Collections

Cost to Collect

Cash Collection as a Percentage of Adjusted Net Patient Services Revenue

Bad Debt

Charity Care

Days in Total Discharged Not Final Billed

FAQs

Q: How should I use HFMA's KPIs?

A: HFMA encourages hospital revenue cycle leaders to adopt the following practices regarding use of the KPIs:

• Embrace the KPIs for tracking performance. Doing so can help hospitals and health systems identify revenue cycle performance trends and proactively prioritize and address areas in need of attention.
• Work with your vendor to fully optimize use of HFMA's KPIs. Vendors can help leverage use of the KPIs to improve business intelligence and enhance management of revenue cycle process flows.
• Share HFMA's KPIs with peers. The greater the number and demographic distribution of healthcare providers that adopt the KPIs, the greater the circle of organizations able to compare performance and best identify market-based trends.
• Continue to look to HFMA for KPI advances. HFMA is committed to continuing to refine and expand KPI activities. Those organizations that continue to follow HFMA in these efforts will be best positioned to make use of strategies for metric-driven performance improvement.

Q: How did HFMA's KPIs come about?

A: Efforts to develop the KPIs were comprehensive. HFMA convened a task force to examine various industry KPIs and other definition sources for completeness, validity, relevancy, and ability to support performance conclusions. Task force members also participated in a survey to help HFMA gain an understanding of KPIs able to provide most value based on organization demographics.

Using this information, the task force identified and prioritized a set of top KPIs that were then vetted with the HFMA National Board of Directors and members of HFMA’s National Advisory Councils. See a listing of the task force members.