Unsubmitted Avg Age
Date: October 18, 2024
Unsubmitted Claims Average Age KPI: Overview and Improvement
KPI Description and Calculation
The average age of unsubmitted claims within a dental office. This metric aims to track how long, on average, claims have been unsubmitted. Maintaining a low average age is crucial for ensuring timely claim submission and reimbursement.
Calculation Overview
The average age of unsubmitted claims is calculated by summing the age of all unsubmitted claims and then dividing this total by the number of those claims.
- Step 1: Determine the age of each unsubmitted claim.
- Step 2: Sum the ages of all unsubmitted claims.
- Step 3: Count the total number of unsubmitted claims.
- Step 4: Divide the sum of ages by the number of unsubmitted claims to get the average age.
To illustrate, if a dental office has three unsubmitted claims that are 10 days, 20 days, and 30 days old respectively, the calculation would be as follows:
- Sum of ages: 10 + 20 + 30 = 60 days
- Number of unsubmitted claims: 3
The average age of unsubmitted claims is then calculated by dividing the sum of ages by the number of unsubmitted claims:
Average Age = 60 days / 3 claims = 20 days
KPI Importance
The “Unsubmitted Claims Average Age” KPI is pivotal for the efficient and profitable running of your dental practice. Here are several reasons that highlight its importance:
Why the Unsubmitted Claims Average Age KPI Is Crucial for Your Dental Office
- Cash Flow Optimization: The quicker claims are submitted, the faster you receive reimbursements from insurance companies. A low average age of unsubmitted claims ensures a steady cash flow, which is essential for covering operational expenses, salaries, and investing in new technologies.
- Avoiding Denials and Delays: Older unsubmitted claims are more likely to be denied or delayed by insurance companies. Insurance policies often have time limits within which claims must be submitted. Keeping the average age low helps to prevent claim denials and ensures timelier payment.
- Operational Efficiency: A high average age indicates inefficiencies in your administrative processes. By monitoring and maintaining a low average age of unsubmitted claims, you can identify and rectify bottlenecks in your billing process, improving overall office efficiency.
- Patient Satisfaction: When claims are promptly submitted and processed, it reduces the time patients spend waiting for their issues to be resolved. This enhances patient satisfaction and can lead to better patient retention and referrals.
- Financial Planning: With quicker claim processing, you have a clearer picture of your expected revenue streams. This makes it easier to make informed decisions about budgeting and financial planning for your practice.
Unsubmitted Claims Average Age = (Sum of the ages of all unsubmitted claims) / (Number of unsubmitted claims)
KPI Improvement
Average age of unsubmitted claims. This number should be as low as possible.
Why It Matters
In the dental industry, managing finances efficiently is crucial for the health of your practice. One of the key performance indicators (KPIs) that directly impacts your cash flow and revenue cycle is the average age of unsubmitted claims. The longer a claim remains unsubmitted, the longer you have to wait to receive payment for the services rendered. Reducing the average age of these claims improves your office’s financial stability and allows you to better serve your patients.
Steps to Improve Unsubmitted Claims Average Age
- Streamline Claim Submission Processes: Implement automated systems or software solutions that can help streamline the process of claim submission. This reduces manual errors and speeds up the submission process.
- Regular Training for Staff: Ensure that your administrative staff receives regular training on insurance claims and submission protocols. Updated knowledge can significantly reduce the average age of unsubmitted claims.
- Create a Daily Task List: Establish a daily routine for your team to check and submit pending claims. Making this a non-negotiable part of the daily workflow will help in reducing the backlog.
- Track and Monitor Progress: Use analytics tools to constantly monitor the progress of submitted claims. Setting up alerts for claims that have not been submitted within a certain timeframe can be helpful.
- Optimize Communication with Insurance Providers: Good communication with insurance providers can simplify the claim submission process. Create a line of contact for resolving any issues swiftly.
Action Plan
To immediately start improving your unsubmitted claims average age, consider the following actionable steps:
- Assess current delays in claim submission and identify bottlenecks.
- Invest in claim management software that integrates seamlessly with your existing systems.
- Schedule weekly meetings to review pending claims and devise ways to expedite their submission.
- Regularly review and update the skill sets of your administrative staff through workshops and seminars.
Average Age of Unsubmitted Claims = Total Age of All Unsubmitted Claims / Number of Unsubmitted Claims
Unsubmitted Claims Average Age Statistics
Statistics for 2024-01-01 to 2024-06-30
- 2024 Year To Date:
- 10th Percentile: 8.35 days
- 25th Percentile: 18.67 days
- 50th Percentile (Median): 44.24 days
- 75th Percentile: 133.43 days
- 90th Percentile: 696.27 days
- Last Year (Same Period):
- 10th Percentile: 7.09 days
- 25th Percentile: 16.32 days
- 50th Percentile (Median): 40.87 days
- 75th Percentile: 119.87 days
- 90th Percentile: 488.65 days
More detailed and per-month KPI statistics are available to Practice by Numbers users.
How Practice by Numbers Can Help Improve These KPIs
Practice by Numbers provides comprehensive dental business intelligence software that can help dental offices significantly improve their KPIs, including the unsubmitted claims average age. Here’s how:
- Automated Workflows: Our software automates the claim submission process, minimizing manual errors and speeding up submission times.
- Real-Time Monitoring: With real-time dashboard notifications, you can quickly identify and address unsubmitted claims, ensuring they do not age unnecessarily.
- Detailed Analytics: Practice by Numbers offers advanced analytics to help you pinpoint bottlenecks in your administrative processes and make informed decisions to rectify them.
- Staff Training: Access training resources and support to ensure your staff is equipped with the most current knowledge and best practices for claim submission.
- Seamless Integration: Our software integrates with your existing systems, enabling a smooth transition and consistent workflow.
By leveraging Practice by Numbers’ dental practice management software, you can effectively lower the average age of unsubmitted claims, improve cash flow, and enhance overall operational efficiency, leading to better patient satisfaction and sustained practice growth.