Key RCM Metrics Every ABA Provider Should Monitor Monthly
- Essential Speech & ABA Therapy
- Nov 13
- 2 min read
Tracking the right metrics is essential to managing your revenue cycle effectively. Without data, you’re flying blind—and in the world of behavioral health billing, that can cost you thousands. For ABA providers, staying on top of your numbers helps you identify billing gaps, increase collections, and make smarter business decisions.
Here are the most important RCM metrics every provider should monitor each month:
1. Days in Accounts Receivable (A/R)
This metric tells you how long, on average, it takes to get paid after services are rendered. A high number here indicates sluggish cash flow and possible billing inefficiencies.
Tips:
Aim to keep your average A/R under 45 days. If it creeps beyond that, investigate whether specific payers or internal processes are causing the delay.
Break down your A/R by payer to see who consistently lags in reimbursement.
2. First Pass Resolution Rate (FPRR)
This shows how many claims are accepted and paid on the first try, without any need for correction or resubmission.
Tips:
A strong FPRR is 85% or higher. If your rate is lower, review your claim scrubbing process and coding accuracy.
Track FPRR by provider to identify training needs or documentation issues that may be affecting specific team members.
3. Denial Rate
Your denial rate reflects how many claims are being rejected by payers. A high denial rate often points to problems in your front-end processes or billing practices.
Tips:
Keep your denial rate below 10%. Regularly audit denied claims and group them by reason to spot trends.
Set internal denial thresholds. For example, if your denials for authorization issues exceed 5% in a month, that should trigger a deeper review.
4. Collections Rate (Insurance + Patient)
This is the percentage of your total billed amount that is actually collected. It includes both insurance payments and patient out-of-pocket payments.
Tips:
If your collections rate is below 90%, identify where you’re losing revenue—whether through write-offs, uncollected balances, or denials that were never appealed.
Run separate reports for insurance collections and patient collections to better isolate weak points in your processes.
5. Aged A/R Breakdown
This metric shows how much of your accounts receivable is aging into buckets: 30, 60, 90, or 120+ days old. High percentages in older buckets mean that you may not be following up effectively—or that some claims are slipping through the cracks.
Tips:
Focus follow-up efforts on claims in the 60-90 day range. After 120 days, recovery becomes less likely.
Use a “claims aging dashboard” to assign tasks and due dates to your billing team for specific aged balances.
Wrap-Up
RCM metrics aren’t just numbers—they tell the story of your practice’s financial health. By tracking them consistently, you can identify inefficiencies early, respond to payer trends, and make strategic decisions with confidence.
Not sure where to start with RCM tracking? Essential Billing Solutions can help you build a customized, data-driven billing strategy designed to support sustainable growth in your ABA or therapy practice.
