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Revenue Cycle

Understanding Your Net Collection Rate

Net collection rate is one of the truest measures of billing performance. Here's how to calculate and improve it.

April 28, 2026 · 5 min read

What It Measures

Net collection rate shows how much of the reimbursement you were entitled to that you actually collected — after contractual adjustments.

A Healthy Benchmark

A net collection rate below 95% usually means preventable revenue is slipping away through write-offs and unworked denials.

How to Improve It

Tighten denial management, A/R follow-up and underpayment recovery to close the gap between allowed and collected amounts.

Key takeaways

  • Calculate net collection rate
  • Aim for 95%+
  • Recover underpayments
  • Work every denial

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