Key Performance Indicators (KPIs) are the measurables that every institution develops in order to monitor and benchmark performance. KPIs include specific details of the measurables and assessment techniques that include details of when and how these will be measured.
What are KPIs?
KPIs are used to evaluate the success of an institution and also indicate if progress is being made in terms of both short and long term financial objectives.
KPI’s also are numbers that can give an overview of the business and help the business owners identify problem areas and address them quickly. In outpatient medical practice, keeping a close watch on the revenue cycle is an absolute necessity to achieve a healthy bottom line.
KPIs in Private Medical Practice
Revenue cycle management (RCM) in healthcare practice involves tracking of every dollar that comes in and goes out. KPIs are the tools that let private practitioners develop a future strategy for achieving a robust financial growth.
Each private practice needs to develop KPIs in terms of metrics using units, time, dollars, or percentages. For revenue management, the key KPIs to focus on include:
Cash Inflow: Tracking cash flow can include monitoring and measuring many metrics related to:
• Number of patients who visit the center
• Fees per doctor per hour
• Total fees in a week and month
Patient satisfaction: To measure patient satisfaction, there can be many metrics in terms of
• Number of cancellations of appointments in a day, week, or month
• Waiting time for each patient
• Number of patients who do not come for follow-up and reasons
• Patient feedback and net promoter scores
Employee satisfaction: The metrics in this segment can include patient feedback, net promotor score and waiting time in the clinic.
Cash outflow: The metrics in this KPI can include:
• Expenses related to facility maintenance
• Salaries of staff
• Medical supplies
• Claim denials by Medicare
• Medical billing errors and delays in billing
• Cost per hour of opening the practice
• Percentage of claims denied by Medicare
The most significant impact on medical practice is the medical billing and accounts receivable. Minimizing the days it takes to process patient claims accurately while staying atop of accounts receivable, define the financial success of a practice.
Outsourcing to an experienced healthcare revenue cycle management company not only allows your practice to focus on your first priority, patient care, but also, ensures faster reimbursements. RCM companies can help your practice attain a healthy account to receivable ratio that puts you on track to achieve your financial goals.