One way to determine if your practice has a healthy revenue cycle is by calculating your net collection rate. In fact, this may be your practice’s most important revenue cycle metric.
Find out what your net collection rate is today!
In simple terms, it tells you what you collect for every dollar billed.
So, how do you calculate your net collections rate:
Here’s is what the calculation looks like -
The Medical Group Management Association (MGMA) recommends a net collection of 95% or higher. That means you are getting .95 cents for every dollar billed. Anything below 95% generally means you have room for improvement and can be an indicator of poor revenue cycle performance.