I realize its a new week, new topic, but we need to review this one last piece....KPI (Key Performance Indicators)

Its important to share information with physicians so they understand their practice. Its important for administrators to understand the business; what area needs attention and to plan for the future.

●             Comparing data across fiscal years

●             Financial ratios

●             Reading and interpreting financial reports

●             Knowledge of computer based tools

●             Key Financial Operating Reports

Are you familiar with these key formulas and how to use them

Practice Performance

(FTE = Full-time equivalent)

Total Gross Charges per FTE Physician = Gross fee for service Charges /Total FTE Physicians

-provides an overall picture of the financial productivity of the group

Total Net Revenue per FTE Physician = Total Medical Revenue / Total FTE Physicians

-provides important measure of the financial stability of the group of a way to compare relative productivity and profitability between practices.

Total Operating Costs per FTE Physician = Total Operating Costs / Total FTE Physicians

-provides indicator of the operating expenses incurred to provide patient care per FTE physician. Used to monitor efficiency and cost effectiveness of operations

Hope you all do well!! Contact us if you have questions... Danielle