What is a common revenue cycle performance metric?

Days in accounts receivable is a crucial performance metric in the revenue cycle as it measures the average number of days it takes for a healthcare organization to collect payment for services rendered after billing. This metric is significant because it reflects the efficiency of the revenue cycle processes, including billing, collections, and correct coding. A lower number of days in accounts receivable indicates a quicker collection process, which is desirable for maintaining healthy cash flow and ensuring that the organization can continue to operate effectively.

In contrast, while the number of patients is important for understanding patient volume, it does not provide insight into the financial efficiency of the revenue cycle. Cost per procedure focuses on the expenses associated with delivering care, but it does not directly address how effectively collections are handled. Patient satisfaction scores are critical for assessing the quality of care and services provided, yet they do not measure financial performance or revenue cycle effectiveness. Thus, days in accounts receivable stands out as the most relevant metric for evaluating the performance of the revenue cycle.