If you’ve read our guide on revenue cycle management (RCM), you understand RCM helps institutions like yours track, identify, collect, and manage incoming payments for services provided. Its purpose is to help your team gain a thorough understanding of your organization’s revenue and financial status.
But one question remains—how exactly does RCM provide valuable information to aid teams in making data-driven decisions?
This is all thanks to revenue management reports. CORE covers what you need to know about revenue management reporting to ensure you stay on the right track.
Table of contents:
- What Is Revenue Management Reporting?
- The 4 Metrics to Include in Your Revenue Management Report
- How Can You Determine Your Revenue Cycle Performance from Reports?
- Unlock the Power of Data with CORE
What Is Revenue Management Reporting?
Revenue management reporting is the process of tracking real-time data on incoming payments and reconciliation to gain a comprehensive report on:
- How your company is performing financially for a given time.
- What areas need to be adjusted/optimized for better performance and ROI.
Overall, revenue management reports help your team stay rooted in data—the centrifugal force that drives revenue cycle management. The reports help your team assess real-time analytics and performance to help:
- Predict your consumer’s behaviors.
- Drive organizational success.
The results? Smarter decisions, happier customers, and maximized revenue.
The 4 Metrics to Include in Your Revenue Management Report
Revenue management reports track specific data points or metrics to assess your financial performance. Below are the four key types of metrics you should consider as you’re putting together your revenue reporting process.
Keep in mind that these metrics:
- May need to be further adjusted to better align with your industry (government, healthcare, or higher education).
- Need to be paired with reliable reporting software to execute a successful revenue management cycle.
Reconciliation compares bank statements against your accounting books to ensure amounts are true, consistent, and up to date.
For smaller firms (in size and budget), customers and finances may be smaller and pretty straightforward. For larger institutions, it can be more complex and challenging to track. This is where revenue reporting can be extremely useful.
Finance teams spend about 30% of their time on manual reconciliation. A revenue management report can automatically track reconciliation. The goal is to help you quickly verify and auto-reconcile deposits and gain a comprehensive look at your transaction flow.
In healthcare, reconciliation might be known as charge capture and billing. Your hospital must match incoming insurance statements to open or outstanding invoices.
That way, your team can verify the organization is paid the right amount for the healthcare services provided to patients. You can receive fast insights on billed vs. paid amounts by tracking this metric in reporting software.
2. Transaction and Tender Type
Tracking transaction and tender types can help your team:
- Assess which payment method is the most common among your customers.
- Identify ways on how to streamline and expedite the transaction process.
- Ensure the correct convenience or service fees are being added to the transaction type.
Let’s say you’re a government institution handling payments from multiple channels. You can segment and monitor specific translation and tender types across various departments by tracking specific translation and tender types. At CORE, our consolidated merchant reporting tool allows you to report all tender types.
Not to mention, tracking this data can identify ways to streamline and expedite your payment methods—for at least 35% of constituents, the delivery method of their government bills impacts how quickly they pay those bills.
When Grand County Utah used CORE to execute digital payments amid tax season, they grew their online payments by 900%, totaling over $3 million in just one year.
3. Card Settlement
When not efficiently tracked, card settlements can harm the health of your financial growth. Automatically tracking card settlements can notify your team of any outstanding balances that need to be addressed. The faster you can take appropriate action, the faster your revenue is maximized.
Especially during the COVID-19 pandemic, paying off medical bills has been especially challenging for patients. Your medical staff can set up payment plans or negotiations to ensure your hospital receives what is owed by tracking card settlements.
4. Denial Rate
The denial rate represents the percentage of claims payers deny within a set timeframe. Denial rate offers insights into how effective your revenue cycle management is. You can spot trends and evaluate how denials might be affecting your revenue.
A low denial rate illustrates a healthy transaction flow. For reference, a five to 10 percent denial rate is the industry average in healthcare.
Denials are common in the healthcare industry—hospitals have hit a 20% increase in denial rates. Reasons for denial include circumstances such as missing information on health claims, services included that the insurance company doesn’t cover, and human error.
Lower these cases of denials by tracking denial rates in your reporting tool. Over time, you can spot trends and evaluate how your staff can execute prevention and recovery strategies and expedite financial recovery.
How Can You Determine Your Revenue Cycle Performance from Reports?
Your organization can determine your revenue cycle performance by tracking the four metrics above with the right automated solutions. Not only can you assess any issues that arise from each metric, but you can also evaluate the time it takes to achieve your goals. This can help you identify areas you need to improve.
Solutions such as CORE’s payment and engagement platform can produce reliable and valid reports, which can help you:
- Assess the financial health of your organization.
- Make the appropriate adjustments.
The heart and soul of revenue cycle reports is that they combine administrative data with your institution’s data to ensure each customer is taken care of and your facility receives its fair dues.
Unlock the Power of Data with CORE
Meet all your reporting requirements with real-time insights when you partner with CORE. Our report generator software allows you to select from multiple reporting templates and configure them based on required metrics.
You deserve a simple, easy, and convenient payment experience. Contact the CORE team today to learn more about revenue cycle management reports and how you can get started.