We will cover Operational indicators, Reports and Policies and Procedures. 

Let’s talk a little about Operational Indicators.  Indicators make our reports.   Some examples include financial indicators, operational indicators, Statistical indicators, and Staffing indicators. 

Key indicators you might use on a regular basis include  collection ratios,  Days Billing Outstanding, Aging Accounts Receivable, or A/R turnover.    These are likely a part of the  financial reports you run daily, weekly or monthly.   You may use statistical indicators to build budgets or for benchmarking purposes.   These include Operating costs per procedure, Operating costs per physician, Revenue after operating costs, and others like this.  Staffing and Productivity indicator helps with staffing and performance.    You very likely use this information in your office every day.   

Study tip:  Look at your reports and identify the indicators you have studied.  You may call your reports something different, but the information is the same. 

Review Chapter 6 in your AOA Resource Manual to go over all the operational indicators.  

Let’s try a sample question:

Accounts receivable / monthly billings (annualized) /360 days  is the formula for which Operational Indicator?

A.      Aged Collections Ratio

B.      Operating Cost Ratio

C.      Days Billing Outstanding

D.      Total Operating Costs per FTE Physician