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 Payer →Appeal Deadlines by Payer and Level →Denial Rate Benchmarks →CPT Modifier Quick Reference →Medicare 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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