What does a hospital's Failure to Bill (FTB) metric typically reflect?

The Failure to Bill (FTB) metric in a hospital context is crucial for understanding how well a hospital is managing its post-treatment billing process. It specifically reflects issues related to the billing cycle and the timeline after patient discharge.

In this case, focusing on the time taken to finalize accounts after patient discharge highlights the correlation between prompt billing processes and revenue realization for the hospital. When this metric is high, it may indicate that there are delays or inefficiencies in finalizing charges and submitting claims, which can negatively impact the hospital's cash flow and financial stability.

The assessment of FTB often involves examining how quickly various departments—such as coding, billing, and accounts receivable—complete their work after a patient leaves the facility. If accounts take longer to finalize, it directly affects cash flow since the hospital cannot collect payments for services rendered until the claims are submitted and processed.

Understanding FTB is essential for identifying bottlenecks in the revenue cycle, which in turn allows for targeted improvements. This approach is critical in ensuring both operational efficiency and compliance with revenue cycle best practices.