Key Metrics Every Medical Billing Professional Should Track in NEMT Business
Medical billing is every healthcare provider's lifeblood, including non-emergency medical transportation (NEMT) companies. No facility or business can function without funds and a healthy cash flow. Medical billing ensures payments come in on time and claims always go through.
How financially healthy is your healthcare practice? You need medical billing metrics to ensure your collections are high and on time. Your business can even boost its bottom line with the help of certain key performance indicators (KPIs) and the right NEMT billing software.
It’s not just about profit—every business can provide better service when it is financially healthy.
Medical Billing Metrics for Your NEMT Business
Medical billing metrics refer to the set of standards that will help you determine how well your NEMT business manages your billing and invoicing. All the data you need for your KPIs are stored in the medical billing software.
Here are the KPIs you should keep track of:
1. Missed Appointments
In the case of NEMT, missed appointments are labeled as no-shows, and they are harmful to the transport business’s finances. For example, someone booked a ride for today, but they failed to show up for the appointment. The NEMT provider has already set the schedule for the driver and vehicle, which means they cannot be used by other passengers at the specified time. So, when there is a no-show, the company would have already spent money for the driver’s time and fuel for the vehicle but wouldn’t get anything in return.
The company’s missed appointment rate must be reduced or eliminated. When choosing the best NEMT software, it pays to find one with patient tracking software or something similar. This will remind the patient of their upcoming appointment. NEMT providers could also institute a penalty for no-shows unless there is advance notice.
2. AR Days
Sometimes referred to as claim lag time, accounts receivable days (AR days) refer to the number of days between when the invoice was sent and when the payment was received. AR days must be as low as possible.
Preventing NEMT billing errors is one way to reduce the claim lag time. Such mistakes could lead to payment delays or, worse, refund rejections or denials from the insurance company.
3. Clean Claims
Clean claims are accepted and paid without delay. It means that the claim documents didn’t have any errors, discrepancies, or other issues.
Generating claims can be complex, but billing tracking will help you increase your clean claims ratio. It should be as high as possible, meaning little to no rejections and fewer clarifications needed.
NEMT billing software like RouteGenie helps prevent medical billing errors. And if there are some, chances are they will be detected before the claims are finalized and submitted.
4. Denial Rate
Every business aims for a zero denial rate. A single denial is already one too many. Make sure your NEMT business is compliant and follows procedures for insurance claims and refunds.
5. Employ Analytics
As technology leads to advancements in healthcare, it’s more important than ever to keep up with trends to keep up with competitors. An excellent example of this is integrating modern healthcare analytics tools that will help improve your business.
For example, one of the most essential features of data analytics is route optimization. It’s not a medical billing metric per se, but it will help with the NEMT business’s finances. Route optimization helps NEMT drivers get to their destinations without using up a lot of fuel. Utilizing multiload abilities also helps with cutting costs.
NEMT analytics software also provides insightful reports like historical trip data to help predict future passenger demands.
NEMT businesses need to make money to make a profit and continue providing A+ services. Medical billing is one way to ensure both since it helps with the proper and timely collection of payments that transportation provider has to collect. However, simple billing processes are not enough. You also need to apply medical billing metrics to measure your NEMT company’s billing performance and find areas for improvement. If you need an efficient NEMT software with great billing piece - contact RouteGenie ASAP.
About the author
An experienced content writer, Keren Dinkin’s forte is writing well-informed medical transportation, healthcare accounting, and related articles. Her work is backed by months of intensive research and pays meticulous attention to details. In addition to being a writer, she also dons the hat of a content strategist. The author assumes no responsibility or liability for any errors or omissions in the content of this site. The information contained in this site is provided on an "as is" basis with no guarantees of completeness, accuracy, usefulness or timeliness.