Metric and Description
DAR (Days in Accounts Receivable)

The average number of days that it takes a practice to collect payment
How do you calculate this?
DAR =
Total AR
÷
Average Daily Charges*
What impacts this metric?
  • Clean and timely claims
  • Charge entry and EMR interface
  • Web-based practice-management system
What is the industry average?
45 days

Your DAR = xx days
Metric and Description
Denial Rate

Percentage of claims that were denied by payers within a certain time period
How do you calculate this?
DR =
Total of Claims Denied
÷
Total of Claims Submitted
What impacts this metric?
  • Denial management
  • Clean accounts receivable
What is the industry average?
5-10%

Your DR = xx%
Metric and Description
RRR (Revenue Realization Rate)

Percentage of claims that are paid or adjusted within six months of submission
How do you calculate this?
RRR =
Total Net Payments
÷
Total Contractual Due
What impacts this metric?
  • Clean claims
  • Follow-up on denied claims
  • Timely submission to secondary payer
What is the industry average?
84%

Your DR = xx%
Metric and Description
AR > 120

The percentage of your accounts receivable that has been in accounts receivable for more than 120 days
How do you calculate this?
AR > 120 =
Accounts Receivable > 120 days
÷
Accounts Receivable
What impacts this metric?
  • Timely reimbursement
  • Denial management
  • Self-pay collections
  • Clean accounts receivable
  • Processing of credit balances
What is the industry average?
90%

Your DR = xx%

How did you stack up?

If you would benefit from a deep dive into your practice consider NPS’ one-time practice assessments to help identify helpful process changes.

Still have questions? Email us at practicesolutions@davita.com or ask us a question on Twitter @NephSolutions.