Average Revenue per Inpatient Admission

Average Revenue per Inpatient Admission is a key metric used in healthcare revenue cycle management to measure the average amount of revenue generated per patient admission to a hospital or healthcare facility. This metric is calculated by dividing the total revenue generated by the number of inpatient admissions during a specific period of time, such as a month or a year. The Average Revenue per Inpatient Admission metric is important because it provides insight into the financial performance of a healthcare facility. It can help healthcare organizations identify trends in revenue generation and make informed decisions about resource allocation, pricing strategies, and revenue cycle management processes. By tracking this metric over time, healthcare organizations can identify areas where revenue generation is increasing or decreasing and take action to address any issues. For example, if the Average Revenue per Inpatient Admission is decreasing, it may indicate that the facility is experiencing a higher number of denials or underpayments from insurance companies, which could prompt a review of billing and coding processes. Overall, Average Revenue per Inpatient Admission is a valuable metric for healthcare organizations to monitor as part of their revenue cycle management strategy. It provides a clear picture of the financial health of the organization and can help identify areas for improvement to ensure long-term sustainability.

Average Revenue per Inpatient Admission is calculated by dividing the total revenue generated from inpatient admissions by the total number of inpatient admissions during a specific period.

The formula for calculating this metric is: Average Revenue per Inpatient Admission = Total Inpatient Revenue / Total Inpatient Admissions

For example, if a hospital generated $10 million in revenue from 2,000 inpatient admissions during a quarter, the Average Revenue per Inpatient Admission would be: Average Revenue per Inpatient Admission = $10,000,000 / 2,000 = $5,000

This means that on average, the hospital earned $5,000 per inpatient admission during that quarter. This metric can be used to track changes in revenue over time, compare performance to industry benchmarks, and identify areas for improvement in the revenue cycle.

Best practices to improve Average Revenue per Inpatient Admission are:

1. Accurate and Timely Documentation: Ensure that all documentation related to patient care is accurate, complete, and timely. This includes medical records, coding, and billing information. Accurate documentation helps to ensure that all services provided to the patient are captured and billed appropriately.

2. Effective Charge Capture: Implement an effective charge capture process to ensure that all services provided to the patient are captured and billed accurately. This includes capturing all billable services, supplies, and medications.

3. Efficient Claims Processing: Streamline the claims processing process to ensure that claims are processed quickly and accurately. This includes verifying insurance coverage, submitting claims promptly, and following up on any denials or rejections.

4. Effective Denial Management: Implement an effective denial management process to reduce the number of denied claims and increase revenue. This includes identifying the root cause of denials, appealing denied claims, and implementing corrective actions to prevent future denials.

5. Revenue Cycle Analytics: Use revenue cycle analytics to identify areas for improvement and track progress over time. This includes analyzing key performance indicators such as days in accounts receivable, denial rates, and net collection rates.

6. Staff Training and Education: Provide ongoing training and education to staff members involved in the revenue cycle process. This includes training on coding and billing guidelines, documentation requirements, and best practices for claims processing.

By implementing these best practices, healthcare organizations can improve their Average Revenue per Inpatient Admission and increase their overall revenue.

The industry standard benchmark for Average Revenue per Inpatient Admission varies depending on the type of healthcare facility and the region in which it operates. However, according to the Healthcare Financial Management Association (HFMA), the national average for this metric is around $15,000 per inpatient admission. It is important to note that this benchmark is not a one-size-fits-all solution and should be used as a starting point for healthcare organizations to evaluate their own performance. Factors such as payer mix, patient acuity, and service mix can significantly impact this metric. Healthcare organizations can use this benchmark to identify areas for improvement in their revenue cycle management processes. For example, if a facility's Average Revenue per Inpatient Admission is below the industry standard, they may need to evaluate their pricing strategy, negotiate better contracts with payers, or improve their coding and documentation processes to ensure accurate reimbursement. Overall, the benchmark for Average Revenue per Inpatient Admission is a valuable metric for healthcare organizations to monitor and improve their financial performance.

Revenue cycle software can significantly improve the Average Revenue per Inpatient Admission metric by streamlining the billing and coding process. With the help of revenue cycle software, healthcare providers can accurately capture charges, reduce coding errors, and ensure timely submission of claims. This, in turn, can lead to faster reimbursement and increased revenue per inpatient admission. MD Clarity's revenue cycle software is designed to optimize the revenue cycle management process and improve key metrics such as Average Revenue per Inpatient Admission. With features such as automated charge capture, real-time claim tracking, and denial management, our software can help healthcare providers maximize revenue and minimize revenue leakage. If you're interested in seeing firsthand how MD Clarity's revenue cycle software can improve your Average Revenue per Inpatient Admission metric, we invite you to book a demo with our team. Our experts will walk you through our software and show you how it can help you achieve your revenue cycle management goals. Don't miss out on this opportunity to optimize your revenue cycle and improve your bottom line. Book a demo today!