KPIs to Fit Your 2020 Challenges as a CFO

Hospital CFOs are facing challenges that are becoming more complex and increasingly tied to other organizational initiatives. As your organization addresses new forms of competition, navigates the consumerization of healthcare, and finds its way in the wake of new payment and medical billing practices, it will be crucial to pinpoint the KPIs that align with your goals. 

To stay ahead of the curve and focus on the future, we’ve put together this challenge-based list of KPIs (MAP Keys included) to prioritize in 2020. 

A staple indicator of revenue cycle health, these KPIs will keep you on top of red flags in cash flows and collections activities. 

1.1. Bad Debt (AR-7)

This KPI is useful for judging the effectiveness of financial counseling and collection efforts. 

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1.2 Aged A/R as a Percentage of Billed A/R by Payer Group (AR-2)

This metric helps assess revenue cycle efficiency by tracking the speed and effectiveness of A/R liquidation by payer category.

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2.1. Net Days in Accounts Receivable (FM-1)

This metric serves as a valuable trend indicator of overall accounts receivable performance and reflects revenue cycle effectiveness.

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2.2. Aged A/R as a Percentage of Total Billed A/R (AR-1) 

This metric reflects the aging and collectability of receivables while highlighting overall revenue cycle performance.

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2.3. Aged A/R as a Percentage of Total A/R (AR-3)

Another trending indicator of receivable aging and collectability. 

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Denial management will become increasingly important as coding remains complex and payers tighten their guidelines. 

3.1. Denial Write-offs as a Percentage of Net Patient Service Revenue (AR-6) 

As a core denial metric, this KPI is particularly valuable for tracking the impact of system upgrades, billing process changes, and contract modifications.

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3.2. Remittance Denial Rate (AR-5) 

This KPI is also an efficiency and quality indicator.

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Modern CFOs move beyond monitoring and scan for opportunities in front of them. 

4.1. Late Charges as a Percentage of Total Charges (CL-2)

By tracking this metric, organizations can uncover ways to reduce inefficiencies, speed up cash inflows, and improve revenue performance.

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CFOs have growing data challenges so clean claims and data quality KPIs will only become more important with time. As you implement new revenue cycle technologies, these KPIs will be especially useful in maintaining data governance standards. 

5.1. Clean Claim Rate (CL-1) 

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If you’ve brought on any new software or procedures for your clinicians, this KPI will be especially useful. 

6.1. Case Mix Index (FM-5) 

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Patients are now the biggest payer groups behind Medicare and Medicaid, meaning that self-pay KPIs should likely move up on your list of priorities. These KPIs highlight the self-pay gross revenue that isn’t included in your cash, charity, or bad debt metrics. 

7.1. Uncompensated Care (FM-4)

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7.2. Uninsured Discount (FM-3)

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This metric tracks an organization’s ability to convert net patient service revenue into cash, providing insight into its fiscal stability.

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If you’d like guidance in prioritizing your hospital KPIs for this year and would like to learn more about the services we offer, start here.