It does not matter you are running a business of a small medical practice or you are working with a big company, financial dashboards are the most important aspects that help you in following ways.
- Develop realistic targets
- Evaluate growth
- Estimate potential performance
- Recognize trends and areas of opportunity for development
- Give leadership to providers and employees to assist them attain practice goals
Remember, the dashboard must be easy to understand, contain correct information and in time to assist you assess the complete financial situation of your medical practice. Your dashboard reports need to be generated at the correct time gap to provide an actual sense in the perspective of your practice’s presentation.
Though not all practices work similarly, the meaning of KPIs is the same. You must understand that a big medical practice may keep the record of productivity, but a small and private practice track total net collections. However, both of these practices are apprehensive about profit generation.
Medical practices must pay attention to following categories to include required information in their dashboard.
Output and Fiscal data
In this section, you should include basic and raw performance pointers like revenue generation, costs by category, visit counts, cash flow analysis, balance sheet data and profit and loss report.
RCM or Revenue cycle management
Revenue cycle management category is about adding information related to collections, net collections percentage, collections, A/R aging, days sales outstanding (DSO), the A/R proportion of gross charges, A/R aging and the net collections fraction.
Data related to patient, payer and provider
Here you have to add information such as cost per patient, revenue per FFS patient, ratios of new patient and old patient, no-shows, profits and amendment ratios by spender, RVUs/cost by provider.
Finally the most important tips for an effective dashboard is to keep it very easy. It should assist you assess performance against estimation and help for more precise fiscal forecasting.