Top KPIs for Ambulatory Surgery Centers

Ambulatory Surgery Centers (ASCs) are critical in delivering efficient and cost-effective surgical care. They have gained popularity among patients since they usually provide a more effective and quality care service than big hospitals. To maintain high standards and streamline operations, ASCs rely on specific Key Performance Indicators (KPIs).

While there are numerous KPIs available for ASCs—ranging from 20 to 30 depending on the complexity and focus of the center—managers must prioritize the most impactful ones to drive growth and improvement in their practice. 

Focusing on a few KPIs, help managers make strategic decisions based on the most relevant metrics. Here, we explore the most used KPIs in the industry, their significance, and optimal review frequency.

Days in Accounts Receivable

This KPI measures the average number of days it takes for a surgery center to collect payments after a service is rendered. It is a critical indicator of the efficiency of the billing and collections process.

A good rate for the Days in Accounts Receivable (A/R) KPI typically falls between 30 to 45 days. This range is considered optimal for most healthcare and surgery centers, indicating that the center is efficient in its billing and collections processes.

Net Collection Rate

This KPI reflects the percentage of collectible revenue that is actually collected. It directly reflects the financial health of the surgery center by showing how well it converts services rendered into actual revenue.

Typically, a net collection rate of 95% or higher is considered excellent for surgery centers. It is recommended that ASCs measure their net collection rate on a monthly basis to track performance trends closely and identify issues promptly.

Revenue per Case

The revenue per case indicates the financial health of an ASC. It helps in understanding the profitability of different procedures and the effectiveness of billing practices. This KPI is crucial for financial planning and strategic decision-making. ASCs generate an average revenue of $1,200 to $1,800 per case, but it can change depending on the speciality.

To measure the revenue per case accurately, ASCs should include the total income generated from each surgical or diagnostic case, accounting for payments from private insurance, Medicare, patient out-of-pocket payments, and any other sources.

The Periodic review assists in financial forecasting and identifying areas for revenue enhancement.

Cash outflow: supply costs

Supply costs represent one of the largest expenditures for ASCs and should be monitored monthly. Evaluate total supply costs both as a percentage of total revenues and on a per-case basis to assess cost coverage effectively.

ASCs can make a deeper segmentation and separate out the typical medical supply costs from the implants, drugs and pharmacy expenses, and down further to sales tax and shipping costs to measure every component going into direct supplies.

Case Volume

Case volume measures the total number of procedures performed within a given timeframe. It serves as a fundamental indicator of an ASC’s operational capacity and financial health. In 2022, the total number of procedures performed at ASCs in the U.S. was approximately 23 million. 

High case volume typically correlates with better resource utilization, staff productivity, and revenue generation. This KPI must be reviewed weekly to monthly, to identify trends, manage scheduling, and ensure that the center operates at optimal capacity.

Patient Satisfaction

Patient satisfaction is crucial for maintaining a positive reputation and ensuring repeat business. It encompasses various factors including: 

• Ease of scheduling appointments

• Wait times

• Staff professionalism and friendliness

• Quality of care received

• Facility cleanliness and comfort

• Post-operative care and follow-up

Studies have consistently shown that patient satisfaction rates for successful ASCs often range from 90% to 92%. Consistent review of this KPI helps in addressing any issues promptly and improving overall patient care. 

Infection Rates

Monitoring infection rates is vital for patient safety and regulatory compliance. Low infection rates enhance an ASC’s reputation and reduce the risk of litigation and financial penalties. It also reflects the effectiveness of the center's sterilization and sanitation practices.

The infection rate in ASCs is significantly lower compared to hospitals, at about 0.1% 

Reviewing infection rates help ASCs improve hygiene protocols and ensure safe conditions for physicians and patients.

Operating Room Utilization

Operating room (OR) utilization measures the efficiency of scheduling and the use of surgical spaces. High OR utilization indicates that resources are being used effectively, while low utilization may suggest inefficiencies or scheduling issues. The optimal rate is considered to be around 75-85% 

Frequent assessments to the OR utilization help in optimizing scheduling and improving operational efficiency.

Cancellation Rates

The average cancellation rate in ASCs is around 5-10% . It is an extremely important KPI to watch since high cancellation rates can disrupt scheduling, lead to resource wastage, and negatively impact revenue. 

Understanding and addressing the reasons for cancellations—whether patient-related or operational—can improve overall efficiency and other important KPIs like patient satisfaction.

For practice managers at ASCs, these KPIs are instrumental in maintaining high standards of care, ensuring operational efficiency, and achieving financial stability. Their regular review and analysis contributes to the overall success and sustainability of the ASC.

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