Five KPIs You Can't Ignore in Your Small Medical Practice
It's tempting to put the business of your small medical practice on the back burner to concentration on patient care. While patient care should always be the first priority of medical staff, you can't ignore key performance indicators that tell you how your practice is faring in financial and regulatory waters.
Daily Charges
In any organization, the sales numbers matter. It's obvious in retail, but many healthcare professionals like to think they are only there to help the patient. While that may be your calling, if you can't pay utility bills, rent, and payroll, there isn't an office to allow you to deliver patient care. Daily charges—the total value of all services provided by your office each day—are important. Here's what you should track:
The total dollar amount associated with services each day
The total amount billed each day
The total amount collected each day
As a medical professional, you know insurance companies are going to deduct from the amount you bill to pay what they deem is usual and customary for the service. By comparing the total collected against the total billed, you can determine how much that deduction is on average. That allows you to track your daily, weekly, and monthly services to ensure you're on track to cover expenses.
Days in AR
Days in AR is the average number of days it takes for your office to be paid for services. This measurement is also known as Accounts Receivable Days. A low AR days measurement means cash flow is regu...
Source: EMR EHR Blog for Physicians - Category: Technology Consultants Authors: Shreya Iyer Source Type: blogs
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