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Metrics and KPIs

Module 5, Lesson 4

Numbers That Tell How Your System Performs

Why Metrics Matter

"You can't improve what you don't measure."

Without metrics: operating on gut feeling
With metrics: operating on evidence
Reveals problems before they become crises
Shows if improvements actually improve things

Key Metrics 1-2

1. Collection Rate

Percentage of estimated amount you actually collect. The most important billing metric.

2. Days to Payment

Time from job completion to payment receipt. Directly affects cash flow.

Key Metrics 3-4

3. Denial Rate

Percentage of estimates or line items denied. High rates indicate documentation or estimation problems.

4. Supplement Rate

Percentage of jobs requiring supplements. Excessive rates may indicate assessment issues.

Key Metrics 5-6

5. Follow-Up Effectiveness

How many follow-ups per job? What percentage require escalation?

6. Documentation Completeness

How often do adjusters request additional information? Deficiencies create delays.

Industry Benchmarks

Collection Rate

>85%

Days to Payment

30-45

Denial Rate

<15%

Supplement Approval

>75%

Your targets may vary by market and business model.

Tracking Your Metrics

Use a tracking system (spreadsheet or software)
Record: estimate amount, submission date, carrier, denials, payment received
Review weekly for operations, monthly for trends
Look for patterns by carrier, job type, team member

Using Metrics for Improvement

Metrics are only valuable if you act on them.

When metrics reveal a problem, investigate
Implement specific changes
Watch the metrics—did it improve?
Measure → Analyze → Change → Measure again

Practical Tips

Start simple—begin with collection rate and days to payment
Build into workflow—capture data naturally
Visualize data—charts show trends better than spreadsheets
Share with team—visibility motivates improvement
Don't punish—use metrics to identify opportunities, not blame

Your Homework

Calculate your collection rate for the last quarter.

Total collected ÷ Total estimated = Collection Rate

If you don't have this data, set up a system to start tracking immediately.

Coming Up Next

Lesson 5.5: Scaling Your Business

Growing profitably
Capacity, consistency, and cash flow
Scaling strategies
Common mistakes to avoid

✓

End of Lesson 5.4

Metrics and KPIs

See you in the final lesson!