To begin your quest to understand how well the practice is performing is to compare last year’s financial performance to the prior year, examine shifting trends and identify the reasons these shifts are occurring. For example, are you doing less of a particular procedure and, if so, is there a reasonable explanation – or if one physician’s production took a dip was it due to more scheduled time out of the office or is it an abnormality that needs to be addressed. Perhaps one urologist’s aged receivable has spiked because of a payer contracting issue. Identifying these types of issues is a good start to managing finances better. It is also important to compare performance to your peers by obtaining the Medical Group Management Associations Cost Survey (if it includes your specialty), www.mgma.com and The annual Joint Statistics Report from the Society of Healthcare Business Consultants, www.nschbc.com.
In a group practice it is important to look at the group as a whole, as well as the some specific numbers and benchmarks for each physician. Examine group performance based on the per physician averages to evaluate and manage income and expense trends and staff levels. For example, how does the practice compares to the average practice in your specialty around the country?
• Number of full-time equivalent staff
• Gross charges
• Percentage of contract adjustments
• Gross revenue, expenses and net profit
• Operating expenses as a percentage of gross revenue
If you simply want to know # of FTE (full time equivalent staff) and percentage of operating expenses against revenue let me know: Go to www.capko.com
Capko & Company your source for practice improvement
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