Electronic Remittance Advice (ERA) Adoption Rate is a key metric in healthcare revenue cycle management that measures the percentage of healthcare providers who have adopted electronic remittance advice as a means of receiving payment information from payers. ERA is an electronic version of the paper-based explanation of benefits (EOB) that provides detailed information about the payment received from the payer, including the amount paid, the reason for any adjustments or denials, and any patient responsibility. The ERA Adoption Rate is an important metric because it reflects the level of automation in the revenue cycle process.
Providers who have adopted ERA can receive payment information faster and more accurately, which can help them to identify and resolve payment issues more quickly. This can lead to improved cash flow and reduced administrative costs. To calculate the ERA Adoption Rate, divide the number of providers who have adopted ERA by the total number of providers who are eligible to receive ERA. Eligibility is determined by the payer's ability to send ERA and the provider's ability to receive it. The ERA Adoption Rate can be tracked over time to monitor progress in increasing automation and improving revenue cycle efficiency.
Electronic Remittance Advice (ERA) Adoption Rate is calculated by dividing the number of ERAs received electronically by the total number of payments received. The resulting percentage represents the proportion of payments that are accompanied by an ERA.
To calculate the ERA Adoption Rate, first, determine the total number of payments received during a specific period, such as a month or a quarter. Then, identify the number of those payments that were accompanied by an ERA. This can be done by reviewing payment records or by using an automated system that tracks ERA receipt.
Once you have these two numbers, divide the number of payments received with an ERA by the total number of payments received, and multiply the result by 100 to get the ERA Adoption Rate as a percentage.
For example, if you received 1,000 payments during a month and 800 of them were accompanied by an ERA, the ERA Adoption Rate would be 80% (800/1,000 x 100).
Tracking the ERA Adoption Rate can help healthcare organizations identify areas for improvement in their revenue cycle management processes. A low adoption rate may indicate that there are issues with the electronic payment system or that providers are not submitting ERAs correctly. By monitoring this metric over time, organizations can make adjustments to improve their ERA adoption rate and streamline their revenue cycle management processes.
Best practices to improve Electronic Remittance Advice (ERA) Adoption Rate are:
1. Educate staff: It is essential to educate staff on the benefits of ERA and how it can improve the revenue cycle process. Staff should be trained on how to read and interpret the ERA, and how to use it to reconcile accounts.
2. Implement ERA software: Implementing ERA software can streamline the process and make it easier for staff to access and use the information. The software should be user-friendly and integrate with other systems.
3. Offer incentives: Offering incentives to staff who use ERA can increase adoption rates. Incentives can include bonuses, recognition, or other rewards.
4. Provide ongoing support: Ongoing support is crucial to ensure staff continue to use ERA. This can include regular training sessions, access to support staff, and updates on new features or changes to the system.
5. Monitor adoption rates: It is important to monitor adoption rates to identify any issues or areas for improvement. This can be done through regular reporting and analysis of data.
6. Communicate benefits: Communicating the benefits of ERA to patients and payers can also increase adoption rates. This can include information on how ERA can improve accuracy, reduce errors, and speed up the payment process.By following these best practices, healthcare organizations can improve their ERA adoption rates and streamline their revenue cycle process.
The industry standard benchmark for ERA Adoption Rate is currently around 80%. This means that approximately 80% of eligible healthcare providers are currently using ERA to receive payment from insurance companies. However, this benchmark can vary depending on factors such as the size and type of healthcare organization, the complexity of their billing processes, and the level of technology adoption in their region.Achieving a high ERA Adoption Rate is important for healthcare providers as it can help to streamline their revenue cycle management processes, reduce administrative costs, and improve cash flow. It also benefits insurance companies by reducing the time and resources required to process paper-based EOBs.
Revenue cycle software can significantly improve the Electronic Remittance Advice (ERA) Adoption Rate metric by automating the process of receiving and processing electronic remittance advice. With the help of revenue cycle software, healthcare organizations can easily receive and process electronic remittance advice, which can help them improve their ERA adoption rate.
MD Clarity's revenue cycle software is designed to streamline the entire revenue cycle management process, including the processing of electronic remittance advice. Our software automates the process of receiving and processing electronic remittance advice, which can help healthcare organizations improve their ERA adoption rate.
If you're looking to improve your ERA adoption rate, we encourage you to book a demo with MD Clarity's revenue cycle software. Our software is designed to help healthcare organizations improve their revenue cycle management processes, and we're confident that we can help you improve your ERA adoption rate. Book a demo today to see firsthand how our software can help you improve your revenue cycle management processes.