Modernize RCM Benchmarks:

Improve Lagging Indicators with Leading Metrics

Stop Chasing Lagging Indicators: How Leading Metrics Are Transforming RCM

You review your AR days and aging report again this month — but by the time the numbers hit your desk, the damage is already done. Sound familiar?

For decades, the healthcare industry has been chained to lagging indicators like AR days, charge lag, and aging reports. These metrics tell us what already happened, not what’s happening right now — and certainly not what’s coming next.

Here’s the truth: the problem isn’t your PM or EMR system. It’s the data they were built to capture. They were designed for transactions, not human touches. And there’s only so much insight you can squeeze from limited inputs.

At MedEvolve, we’ve shifted the conversation from looking backward to looking ahead. With AI-driven workflow and analytics, leading indicators reveal performance before it impacts your financials — so you can take action early, reduce friction, and watch your lagging metrics improve naturally. When leading metrics are strong, AR days shrink, AR aging improves, and your net collection rate begins to reflect true best practice.

Rethinking What You Measure

Reinventing revenue cycle management starts with reinventing what we measure. MedEvolve benchmarks hundreds of clients and tens of millions of touches, giving us clear AI-driven insight into where organizations land when they go live — and how they progress toward best practice over time. Your first benchmark isn’t a grade; it’s your step-on-the-scale moment. From there, improvement becomes measurable and predictable. That’s what we call the MedEvolve Target — a data-backed performance range achieved by clients approaching true RCM best practice.

From Lagging Indicators to Leading Metrics

Lagging Indicator
Leading Metrics
Leading Benchmark
How Leading Metrics Correct Lagging Indicators
Clean Claim Rate / Bad Debt Write-Offs
Zero-Touch Rate
>75%
A “clean claim” may still require manual work to get paid. A “zero-touch” claim sails through adjudication with zero human intervention — no follow-ups, no wasted time. Accurate financial clearance upstream eliminates rework and manual back-office processing which naturally reduces denials and bad debt downstream.
Cost to Collect / Labor Efficiency
Avoidable Touches (Waste)
<15%
Avoidable touches capture redundant or premature follow-ups and task assignments that add no value. Configuring worklists by payer response timelines and providing additional training where necessary prevents wasted effort, improves labor efficiency and lowers overall cost to collect.
Denial Rate / Denials as % of Revenue
Avoidable Touches (Denials)
<10%
Avoidable Touches Related to Denials reflects how efficiently staff handle preventable denials. When representatives lack the expertise or authority to resolve issues independently, they create additional tasks for others — multiplying work and delaying resolution. Tracking and reducing these touches builds expertise, speeds recovery, and lowers overall denial rates.
Days in AR
First-Touch Payment Rate
>90%
When intervention is required, one touch should be enough. Tracking first-touch payments gives real-time visibility into where claims stall, whether it’s a representative, payer, or process breakdown and helps reduce aging.
Staff Productivity (Claims per FTE)
Average Touches to Claim Resolution
≈1.1
Traditional productivity metrics only show that a claim was paid, not how much effort it took to get there. Measuring touches per claim exposes the hidden labor cost behind collections. Reducing those touches increases throughput, efficiency, and true staff productivity.

Why Leading Metrics Matter

Best practice isn’t a mystery — it’s math. When you measure touches, you expose inefficiencies that were previously invisible: where humans are intervening, where errors occur, and where processes stall. Every unnecessary touch adds cost and delay. Every eliminated touch accelerates cash flow. The less friction between claim submitted and payment received, the more your revenue cycle functions like a revenue engine — efficient, predictable, and self-improving.

Turning Insight Into Action

MedEvolve isn’t just counting claims; we’re reshaping how healthcare organizations think about performance. Our AI-driven operational intelligence turns raw data into actionable insights — telling you where to act before financial results start to slip. With real-time visibility into human touches, you can eliminate waste, prevent denials, and elevate staff productivity. When your data, people, and processes work in sync, you don’t have to chase lagging indicators. They’ll take care of themselves.

If you’re ready to move beyond backward-looking metrics and start managing what truly drives performance, MedEvolve can help. Discover how AI-driven operational intelligence can transform your revenue cycle — from reactive to proactive.

Download the New Benchmarks Report

About Matt Seefeld

Matt Seefeld, Chief Executive Officer at MedEvolve, brings over 24 years of management consulting experience in the healthcare industry. He has extensive expertise in the assessment, design and implementation of process improvement programs and technology development across the entire revenue cycle. Matt began his career with Stockamp & Associates, Inc. and worked for both PricewaterhouseCoopers LLP and Deloitte Consulting LLP in their healthcare and life sciences practice lines. In 2007, he developed a business intelligence solution and founded Interpoint Partners, LLC, where he served as Chairman and Chief Executive Officer. In 2011, he sold his business to Streamline Health Solutions where he then served as Chief Strategist of Revenue Cycle followed by Senior Vice President of Solutions Strategy until 2014. Matt ran global sales for NantHealth and provided consulting services for healthcare technology and service businesses nationwide, prior to joining MedEvolve full-time.

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