Make your revenue cycle hum.

Measure up to the right goal. A goal that is measurable, achievable, and critical to your bottom line gives your team a “true north” point on its collective compass. Determine that necessary goal—for example, meeting the industry standard to financially clear 95 percent of all elective procedures five days before admission—and then measure your progress with a consistent scorecard of key metrics. Tracking the goal is a springboard to asking the right questions and better diagnosing issues. Keep the goal fresh with cash and noncash incentives for any hospital employee tied to the goal. The exhibit illustrates a macro-level incentive program for all revenue cycle team members, including the patient access and patient accounting teams. The program uses an overall cash collection stretch goal of 102 percent of the budgeted quarterly cash collections (based on trailing two-month average collectible net revenues). Of course, checks and balances are needed between your accounting department and an external auditor to keep net revenue and the cash goal appropriate. If needed, solidify your goals with an internal contract that emphasizes each individual’s commitment to improve the whole system—even if the explicit goal has to shift along the way.