Our last post talked about some of the key performance indicators a practice can examine to understand how well it is performing. Now we will dig a little deeper and look at other indicators that identify if a practice is above the norm and meeting the expectations the team has set.
Managing referrals and the revenue cycle
It is important to monitor and compare these additional performance indicators between each physician in the practice from year to year:
- Top ten CPT codes by utilization: Determines the high demand services and variables between physicians. This report can also be used to track payer reimbursement trends for these top revenue sources.
- Number of new patient and established patient visits: Monitors practice growth or decline.
- Referral trends: Tells you who are referring, who is not and how this is changing over time. This is also a good way to evaluate referral management and marketing efforts.
- Accounts receivable and days in A/R, DAR reveals how well you are doing at bringing in the money.
- Aged accounts receivable 90 days or more: An important indicator for monitoring internal billing and collection performance. Ideally ,this will be less that 15% of the total A/R.
- Outstanding claims: If there are variants between physicians there could be contracting issues or differences in physician coding (CPT and ICD) and reporting patterns.
The old saying “you cannot manage what you fail to measure” is true. When armed with this data the practice will be able to better understand its position and know what corrective actions and changes need to be made.
If this post brings a question to your mind that remains unanswered, contact us by following this link: www.capko.com. We are on your side!
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