Keeping up with metrics is vital for any business. However, laboratory revenue cycle management involves much more than simply thinking about analytics. A lab’s success depends on adequate funding to complete projects, regardless of where this funding comes from. Financial visibility ensures that the organization is growing sustainably and has a solid understanding of its target audience.
What is financial visibility?
Financial visibility is a business’s ability to have appropriate funds or cash flow to cover operations costs. It also measures how well a laboratory is handling the investments they currently have and the return on investment (ROI), indicating whether or not operational procedures – like the revenue cycle management (RCM) – need to be updated to reflect a more efficient cash flow system.
What are some challenges that labs face when attaining financial visibility?
Not having enough visibility is one of the most extensive challenges labs face when organizing its revenue cycle. This is why transparency matters, as the absence of it allows for mistakes to go undetected – causing problems for the long-term success of a lab and its team. Challenges also permeate into business relationships. If your lab does not have an efficient billing or support system, it will be limited in how it can handle transactions.
What are some best practices to follow?
Financial visibility is achievable for labs in all disciplines. Any new solution implemented or expanded upon must be purpose-driven to ensure that it fits your lab’s mission and scope. However, a lab must first begin to prioritize data management and analytics. Once a manageable system is developed to track these and other key metrics, real progress toward financial stability can begin. Examples of key performance indicators (KPIs) that are helpful to monitor regularly are:
1. Net Promoter, Customer Satisfaction, and Customer Effort Scores
2. Churn Rate
3. Average price per transaction
4. Time from the start of a project or order to finish
5. Individual client statistics for revenue and profit
How can Credence Global Solutions help?
Outsourcing your RCM system significantly reduces the amount of time that your in-house team is spending on procedures. While it may seem like a large investment initially, it will likely prove to be a successful and profitable change to your lab. Credence Global Solutions can help increase your financial visibility, helping you manage your laboratory revenue cycle management. Our team of experts is ready to improve your RSM and help you achieve financial visibility. Contact us to get started.