Session Spotlight: Measure It, or It Never Happened
by: Jeff Rowe, HME News
Friday, October 12, 2018
ATLANTA – Do you know what your HME company’s key performance indicators are? At Medtrade, during the session “Key Performance Indicators for your DME Revenue Cycle" on Tuesday, Joey Graham, general manager of Prochant, will explore how to identify, measure and impact KPIs for HME providers.
HME News: What percentage of HME providers keeps track of KPIs?
Joey Graham: It’s super scattered, both in terms of the level of implementation of KPIs and the way providers calculate them. There’s no standardized platform.
HME: Make the case for why KPIs should be a big part of any provider’s business.
Graham: Because otherwise, how do you know what you’re doing, whether your company’s performance is acceptable or unacceptable? It’s like driving a bus forward, but you can’t turn around and you have no idea where you’ve been.
HME: Are certain KPIs more important?
Graham: Three of the top KPIs are 90-plus AR percentage, or the accounts receivable older than 90 days; payment rate, or what percentage of billed revenue comes back as payments; and hold days, or how many days of revenue are tied up in your hold, whether it’s because you’re waiting for prescription approval, a prior authorization hold, or a manual hold for some other reason.
HME: What are some of the logistics around KPIs?
Graham: There are eight key metrics that we talk about. We break them down, then talk about where the data come from, how you calculate KPI, and what some standard industry benchmarks are. For example, 90-plus AR: How do calculate it? What can you do to improve? How do you prioritize your team’s workload?
HME: If attendees take away one thing from your session, what should it be?
Graham: They should start looking at their KPIs right away—optimally, on a weekly basis, but monthly at a minimum.