What Is Turnaround Time — and Why Does It Matter?
Turnaround time (TAT) refers to the time it takes for a task or process in the revenue cycle to be completed from start to finish. Whether it’s submitting a claim, receiving a payment, responding to a denial, or obtaining prior authorization — the speed of execution matters more than most organizations realize.
Unfortunately, TAT is often overshadowed by flashier metrics like days in A/R or denial rates. But here’s the truth: slow TAT silently erodes cash flow, bloats your A/R, and exhausts staff.
The Cost of Ignoring TAT
Not tracking TAT across the revenue cycle can lead to:
- Delayed reimbursement due to sluggish internal workflows
- Missed timely filing limits from bottlenecks in submission or follow-up
- Provider dissatisfaction due to lagging charge entry or credentialing
- Redundant work when tasks are “touched” multiple times before resolution
And most dangerously, slow turnaround becomes normalized, making inefficiency invisible.
TAT Benchmarks to Know
While exact benchmarks vary by specialty and payer mix, here are general guidelines to aim for:
| Process | Target TAT |
|---|---|
| Charge Entry | < 2 days |
| Claim Submission | < 3 days post-encounter |
| Payment Posting | < 2 days post-ERA/lockbox |
| Denial Follow-Up | < 5 days from denial receipt |
| Prior Authorization | < 48 hours (non-urgent) |
| Refund Issuance | < 10 days from patient overpayment |
Are you meeting—or exceeding—these benchmarks?
Where TAT Breaks Down
Common bottlenecks that inflate TAT include:
- Manual handoffs between departments or outsourced vendors
- High rework rates from poor data quality or missing documentation
- Untracked queues where claims sit idle (e.g., in coding review or clearinghouse)
- Lack of accountability due to no assigned TAT owner per workflow
These breakdowns don’t just slow processes — they damage the bottom line.
How to Make TAT a Core KPI
Want to bring turnaround time into the spotlight? Follow these steps:
1. Define TAT for Each Workflow
- Charge entry TAT, denial response TAT, auth approval TAT — don’t generalize.
2. Set Baselines and Benchmarks
- Use past performance to identify your starting point, then set SMART goals.
3. Implement Visual Workflow Tools
- Use dashboard tools or workflow engines (like Zoho Projects, Asana, or PM tools built into your EHR) to time-stamp every handoff.
4. Create Ownership
- Assign each workflow a TAT “owner” responsible for daily or weekly review.
5. Report and Adjust Monthly
- Incorporate TAT into monthly ops meetings, just like denial trends or A/R aging.
Final Thoughts
If you’re not tracking turnaround time, you’re managing blind.
Revenue cycle success isn’t just about what you do — it’s about how fast you do it, and how many delays you eliminate along the way.
✅ Add TAT to your KPIs.
✅ Surface your workflow bottlenecks.
✅ Accelerate cash flow by speeding up the right things.