The Power of Revenue Cycle Management Benchmarks

Published in Member Communities on January 05, 2026

By Ronda Buhrmester, Senior Director, Payer Relations, VGM & Associates

When observing the operating system and there is a revenue cycle dashboard, has there been speculation if the appropriate benchmarking is being captured? Is your company aligned with similar suppliers? Have you ever wondered what the dashboard really does for your business? 

I am here to tell you that the dashboards are there for a reason; it’s not for decoration. The first step is understanding what is being measured, followed by making sure the parameters are set up correctly, and who is accountable for working the details being seen. 

What are your key areas that are being monitored in revenue cycle management (RCM)? Your dashboard may have different benchmark measurements than others in the industry. Your parameters may even be set differently based on the type of products or payers.

The following seven areas are what I believe are important to monitor with the complete revenue cycle management process. If there is a different one you are monitoring that is not mentioned below, let my curious mind know.  

If the dashboard parameters are set up correctly, the financial health of the company can be determined with a quick glance.

1. Days Service Outstanding (DSO)
2. Write-Off Rate
3. Denials
4. Confirmation
5. Open Orders
6. Held Revenue
7. Accounts Receivable 

1. DSO

The average days between the date of service and date of payment. The average amount of time it takes to get paid. 

• Needs Addressed Immediately: >76 days
• Needs Attention: 56-75 days
• Great: < 56

2. Write-Off Rate

The percentage of allowable billing that is adjusted off the accounts received each month as bad debt.  

• Needs Addressed Immediately: >9%
• Needs Attention: 6-9%
• Great: <6%

3. Denials

The percentage of claim lines that come back denied each month.

• Needs Addressed Immediately: >15%
• Needs Attention: 10-15%
• Great: <10 %

4. Confirmation 

• Needs Addressed Immediately: >5 days
• Needs Attention: 3-5 days
• Great: <3 days  

5. Open Orders

The number of days’ worth of orders open, not confirmed. 

• Needs Addressed Immediately: >15 days
• Needs Attention: 12-15 days
• Great: <12 days

6. Hold Days

The number of days’ worth of allowable billing that is tied up on hold in accounts receivable.  

• Needs Addressed Immediately: >8 days
• Needs Attention: 5-8 days
• Great: <5 days

7. Accounts Receivable 90+ Balance

The percentage of accounts receivable that is aged beyond 90 days.

• Needs Addressed Immediately: >30%
• Needs Attention: 20-30%
• Great: <20%

Finally, let’s look at the clean claim rate, which is the percentage of claims submitted for payment without a denial, rejection, or development. The claim is submitted for payment and paid timely. A clean claim rate above 80% is good, but a clean claim rate above 90% is amazing! 

As you are reviewing the dashboards, keep in mind there are factors that can affect the benchmarked data. One factor to consider is the type of payers could significantly reduce the DSO. There are payers like traditional Medicare that will pay around 14 days. Then there are payers that are at 30 days plus. These are payers that need contract reviews to ensure they are following the contract guidelines for payment terms. These are the payers that need claims submitted quickly and timely to start the payment process. In addition, consider negotiations with the payer to seek quicker payment terms. 

Another factor to consider is the type of products and equipment being offered. Preparing a claim for complex rehab or complex respiratory will take longer versus preparing a claim for a nebulizer or walker. This is where ensuring the correct payer is set up within the system and pointing to the correct price table. A common denial with claims is inconsistent or missing modifiers. Are the price tables set up correctly with the appropriate modifiers? Is the staff well versed in knowing the modifiers required for a specific payer? 

Looking ahead at 2026, let’s take time to review a few things, such as ensuring the parameters are working for your company. Are there any changes to the parameters that would better align with your business for more accurate benchmarking? Where are the concerns that need immediate attention, and why is your company in the yellow or red areas?  

Where can additional training be provided for staff? Lastly, price tables need to be a priority handled by a trained staff member. Price tables are not a set it and forget it; these need attention regularly.

If your clean claim rate is above 90% and your dashboard is all green, your company gets the gold star as a decoration, and I want to know! This would be amazing news to share! Shout it loud and share it with me ronda.buhrmester@vgm.com.

When we dive deeper into your dashboard and financial performance, we move beyond decoration— and start driving real direction.

This article was originally featured in the "VGM Playbook: Disrupting the Traditional HME Strategy." To read the full article and more like this, download your copy of the playbook today! 

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