Uncompensated Care Expense as a Percentage of Gross Patient Revenue

Benchmarking Report

Uncompensated Care Expense as a Percentage of Gross Patient Revenue

This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring Uncompensated Care Expense as a Percentage of Gross Patient Revenue. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.


What is Uncompensated Care Expense as a Percentage of Gross Patient Revenue?

The dollar amount of charity and bad debt-related expense incurred by the healthcare facility divided by the total dollar amount of revenue generated by the healthcare facility over the same period of time, as a percentage.

Why should Uncompensated Care Expense as a Percentage of Gross Patient Revenue be measured?

Uncompensated Care Expense as a Percentage of Gross Patient Revenue measures the dollar amount of charity and bad debt-related expense incurred by the healthcare facility in relation to the total revenue generated by the healthcare facility over the same period of time. A relatively high value for this metric is typically related to a few common factors, including inefficient call scripts and call handling policies, poor customer contact tracking and management (i.e., tracking of customer communications and contact information), an increase in payment disputes (can be due to patients or insurers being unable or unwilling to pay their bills), overstaffing of the healthcare facility's billing and/or collections functions, inaccurate projections for the amount of financial assistance patients will need, inefficient processes to determine whether patients are able to pay bills, and sub-par billing and collections employee training and performance. While a low value for this metric is preferred, the amount of uncompensated care expense the hospital can obtain without causing undue financial burdens should be balanced with the hospital's mission, financial condition, geographic location and other similar factors.


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