Four Metrics You Should Be Monitoring
Reviewing end-of-quarter financials is one thing, but there are some meaningful metrics your practice should be looking at on a daily or weekly basis. These include:
Daily: Cash Receipts – Revenue is the lifeblood of the practice. The money that is collected and deposited should be monitored daily, both as an indicator of financial health and as a deterrent against fraud and embezzlement.
Daily: Patient appointments – Track the number of available appointment slots daily. Unfilled slots are essentially money left on the table. Using this data, you can tighten up on operational efficiencies while also helping keep charge volume consistent. At the same time, track rates of cancellations, no-shows and doctor-ordered bumps. These numbers will help point out opportunities to optimize your schedule and improve capacity management.
Weekly: Charges – By extension, charges drive cash receipts. Watch for fluctuations in charges, which could signal anything from poor coding and charge entry to simply having a physician away on vacation.
Weekly: Payables – Keep tabs on practice overhead by monitoring unpaid invoices and the amount of cash available to cover those expenses. Weekly monitoring allows you to get a handle on practice cash flow and helps ensure you have sufficient funds on hand to cover your bills.
There are also a number of different key performance indicators (or KPIs) you can be monitoring on a regular basis, including accounts receivable aging and your payer mix and performance. The key is to develop a dashboard of KPIs based on your unique challenges, opportunities and strategic goals.
Finally, be sure to take action. Don’t allow KPIs to be another report that sits in your inbox. Use the data to uncover areas of underperformance and take actionable steps to improve your practice’s performance and profitability.
Healthcare Practice Strategies - Summer 2016