Why Write-Off Rate Is a Better RCM Metric Than Denial Rate
Kimberly Scaccia names cash as the primary metric she monitors daily at TriHealth, calling it the indicator of overall revenue cycle health. When asked for the next layer of key metrics, she names two that she considers essential and undervalued. First: cost to collect. If cash collections are rising but cost is rising alongside them, the organization is not being a good steward of its financial resources, which is as important a test of performance as the raw collection number. Second: write-off percentage. Scaccia prefers it to denial rate because it captures what was actually lost, not just what was challenged, making it a more honest measure of how well the revenue cycle is performing.
Key Takeaway
Denial rate is overemphasized in revenue cycle benchmarking. Write-off percentage tells a more complete story because it reflects what the organization actually failed to collect, and cost to collect ensures that cash recovery does not come at the expense of financial stewardship.
“Everybody talks about what’s your denial percentage. I personally prefer to look at my write-off percentage because that is to me a better indicator of how we’re doing.”
Kimberly Scaccia, Vice President of Revenue Cycle, TriHealth
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