In 2025, data-driven decision-making, one of the components of AI solutions, is no longer a luxury; it’s a necessity, especially in DME billing. However, the process of collecting key information is often convoluted. Between billing tools, accounting software, payment portals, and analytics platforms, insights can easily get lost in the shuffle of disconnected systems.
Today’s DME software companies help billing managers stay on top of key metrics, and by analyzing this information, you can assess how well your organization is truly performing. For example, high denial rates might suggest your current intake tools aren’t maximizing their potential.
Understanding which metrics to track—and how to use them—can make a measurable difference in both operational efficiency and financial outcomes.
With the help of Medbill’s VP of Operations, Kristopher Hartley, we’ve outlined six of the most important metrics for billing managers to track.
Meet the Expert: Kris Hartley
Hartley has led Medbill’s service and billing operations since October 2023, bringing 20 years of medical industry experience to his role as VP of Operations. Hailing from North Carolina, he enjoys hiking, mountain biking, and camping with his family in his free time.
6 Key Metrics for DME Billing Managers
If you work in DME billing, it’s essential to track the metrics outlined below. Monitoring them over time will help you identify challenges that impact your bottom line and make informed decisions to maximize reimbursement revenue.
1. Orders Per Month
In DME billing, orders per month refers to the number of orders received and processed by a supplier each month. Orders per month includes orders for new equipment, resupply requests, and renewals. It’s helpful to track rental orders separately from purchased/sale orders, since rentals often involve heavy set-up effort but create recurring billing, which can affect your team’s workload and cash flow differently than sale orders.
Drilling down further, tracking orders processed (those that are verified and moving forward), can highlight how efficiently your team is converting initial requests into completed orders. Monitoring orders by referral source gives visibility into which partners are driving the most volume, helping you prioritize relationship-building efforts.
Why it matters
Tracking orders per month gives you a high-level view of your organization’s workload. Understanding the pace of orders throughout the year will help you prepare for busy seasons and anticipate staffing needs.
Orders per month can highlight exciting growth opportunities for your business. A steady increase may indicate that your team’s efforts (like improving service, streamlining claims, or offering flexible payment options) are paying off. Even if you notice a dip, it’s a chance to explore ways to better meet customer needs and stay competitive
2. Orders Per Employee
Orders per employee is a metric that measures the individual productivity and workload of each member of your billing team. Calculating orders per employee is simple; all you need to do is total the number of orders an employee processes in a given period of time. Most DME software companies offer analytics features to assist with this process and eliminate the possibility of calculation errors.
Why it matters
Orders per employee helps you identify top performers on your team. Conversely, it also reveals underperformers who may need additional support or training.
You can also use orders per month to balance workloads, or use individual productivity trends to set reasonable expectations and allocate work accordingly. For instance, if you have a team member who excels at processing complicated claims, leverage that expertise by assigning them more complex cases while distributing simpler tasks to others.
3. Claim Denial Ratio
In DME billing, claim denial ratio refers to the percentage of DME claims rejected by insurance companies out of the total number of claims submitted within a specific period.
According to Hartley, the average claim denial ratio is between 8% and 12%. Consider this range an industry benchmark, but remember that the lower the claim denial rate, the better.
“Ideally, providers will have a denial rate lower than 10%,” he says.
In addition to understanding your overall claim denial ratio, it’s a good idea to dig into the causes behind specific denials. “We look at top denials every month for our customers. We review what their top three to five denials are—what payers are causing those denials, and take action accordingly,” Hartley says
Why it matters
Denied claims delay reimbursements, which interfere with your cash flow. In the worst-case scenario, you may even lose out on a reimbursement altogether due to a denied claim.
Further, your team will have to rework claim submissions that were denied, eating into time that could be spent on other, more patient-facing tasks. Tracking your claim denial ratio also helps identify inefficient processes and additional training needs.
4. Billed revenue
Billed revenue is one of the most foundational metrics in DME billing, and one of the most telling. It reflects the total amount submitted to payers for the equipment and services your business provides. While it doesn’t represent actual cash in hand, tracking billed revenue consistently offers a high-level view of billing volume and business activity. Because it excludes held claims, billed revenue offers a clearer picture of the cash your business should be generating.
More importantly, billed revenue is a reflection of your team’s operational efficiency. Are claims being generated and submitted correctly? Are orders being processed quickly and thoroughly? A steady, growing stream of billed revenue suggests that your intake, documentation, and billing processes are functioning well and keeping pace with demand.
Why it matters
According to Hartley, “Billed revenue is something that’s really important. It gives us insight into the health of the customer’s business.”
When billed revenue is trending upward and as a greater percentage of total revenue, it typically indicates strong relationships with referral sources, an effective sales process, and efficient throughput. If it starts to dip, it may be a sign that there’s a breakdown in those areas, or that changes in payer policies or patient demand are affecting performance.
“Is your business stable from your top referral sources? Do you have somebody who’s focused on sales?” Hartley says, “Seeing billed revenue dip should help you ask these important questions.”
5. Collection Ratio
In DME, collection ratio refers to the percentage of billed claims that are successfully collected from payers. It measures how effectively a provider is getting paid for the equipment and services they deliver. As Hartley puts it: “Are we getting that money in the door?”
Unlike confirmed revenue, the collection ratio reflects actualized income—it shows the percentage of billed claims that have been successfully collected, not just what was delivered, held, or accrued.
Tracking a 6- and 12-month rolling collection ratio helps smooth out short-term fluctuations and gives a clearer picture of long-term billing performance, making it easier to spot trends and set realistic financial goals.
Why it matters
For DMEs, collection ratio is one of the clearest indicators of financial performance.
A strong collection ratio means the billing process is efficient, claims are being paid, and revenue is flowing. If the rate is low, it can signal issues like claim denials, coding errors, or payer delays that need attention. Also, looking at collection ratio for insurance billing vs. patient billing can lead to better, more focused process improvement.
Ultimately, tracking this metric helps managers spot problems early, improve cash flow, and ensure the business gets paid for the work it’s doing.
6. A/R Outstanding
Accounts receivable (A/R) outstanding refers to the total amount of money that has been created but not yet collected. In DME billing, where reimbursement timelines can be extended and complex, this metric plays a critical role in understanding your cash flow and identifying potential bottlenecks.
A/R is often broken down by aging buckets; typically 0–30 days, 31–60 days, 61–90 days, 91–120 days, and over 120 days. This breakdown helps billing managers understand how long it’s taking to collect payments and where claims may be getting stuck in the process. Watching your over 300-day-old claims can also be critical for avoiding timely filing issues.
Why it matters
Tracking A/R outstanding helps DME billing managers prioritize follow-up efforts, flag issues with specific payers, and identify internal inefficiencies before they become escalated cash flow problems.
“The percentage of A/R aged over 120 days is an especially important metric to track. High percentages indicate delayed resolution, poor follow-up, or issues with payers,” Hartley says.
In other words, when a significant portion of your receivables are sitting in the 120+ day category, it’s often a sign that something in your workflow (or in the payer’s process) is holding up payments or broken.
“We consider less than 25% as successful, given the current payer climate. But, less than 15% is ideal,” Hartley adds.
By keeping a close eye on A/R Outstanding and aging trends, you can maintain a healthier revenue cycle, improve collection times, and ensure that your team’s efforts are translating into actual payments.
DME Software: The Easiest Way to Collect Accurate Data
If you’re tired of tabbing up multiple programs to manage your billing data, make the switch to TrueSight. Unlike other DME software companies, TrueSight was built by the revenue cycle management experts at Medbill and is a fully integrated system.
With TrueSight, you have the ability to build configurable dashboards that put the data you care about front and center. No extra information to parse through, having to create ad-hoc reports, or multiple platforms to switch between for patient collection information— the data you care about is right within the system.