BILLING REFERENCE

Healthy RCM Benchmarks

These are the revenue-cycle metrics that tell you whether a practice is collecting what it earns. The targets below are widely cited industry benchmarks (MGMA/HFMA-style ranges); they vary by specialty, payer mix, and practice size, so read them as directional, not absolute. The point isn't hitting a single number — it's watching the trend and catching a warning sign before it becomes a cash problem.

MetricHealthy targetWarning sign
Net collection rate95–100% of contracted (allowed) amountBelow ~93% — you're leaving contracted dollars on the table
Days in A/R30–40 daysAbove ~50 days, or a rising trend
A/R over 90 daysUnder ~15–20% of total A/RAbove ~25% — aging is outrunning your workflow
Clean claim rate95%+ pass on first submissionBelow ~90% — front-end errors are costing rework
First-pass resolution / paid rate90%+ paid on first submissionBelow ~85% — too many claims need rework
Denial rateUnder ~5–10% of claimsAbove ~10%, or a climbing trend
Cost to collect~2–4% of net revenue (varies widely)Rising cost with flat or falling collections

What to do with this

  • Net collection rate is the truest health signal — it measures what you collected against what you were actually owed under contract, after legitimate write-offs.
  • Watch days in A/R and the over-90 bucket together; a healthy average can still hide a growing pile of old, unworked claims.
  • A high clean-claim rate with a high denial rate means the problem is on the payer/adjudication side, not your claim scrubber.
  • Benchmarks vary by specialty and payer mix — compare a practice to its own trend line first, then to the industry range.
More billing references
Timely Filing Limits by PayerAppeal Deadlines by Payer and LevelDenial Rate BenchmarksCPT Modifier Quick ReferenceMedicare Appeal Levels (Fee-for-Service)CARC Group Codes (CO, PR, OA, PI)Place of Service (POS) Codes Commonly Disputed

Volari works the metric that quietly erodes net collection rate: the denied and underpaid claims sitting in the over-90 bucket that no one has time to rework. Recovering them is what moves the number, not another front-end scrub.

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