Financial Evaluation
What is not measured does not improve!
You should be measuring the following key performance indicators related to the financial performance of your practice and monitoring them for improvement on an ongoing basis:
- Average age of Receivables
- Revenue per Employee
- Revenue per Physician
- Claims Reimbursement Rejection Rate
- Net Collections Rate
- Write-Off percentage to Billing
- Administrative Staff per Provider
- Average Revenue per Patient
- Debt Service Coverage
- Debt to Capitalization
- Current ratio
- Days Cash balance
You should be measuring these key indicators against targets and over time for two key factors; financial stability and improvement opportunity and working on improvement plans. You should consider a one-time financial analysis to identify areas of improvement need and opportunity.