Too many physicians wait for their accountants to tell them if they have a good or bad year. All year long they have been busily practicing medicine, being busy means you’re doing well right? Not necessarily.
Year-end is not the time to find out that your practice needs some administrative work. You need to monitor what is going on a continuous basis, so you can change direction, modify practice, and take action. When at year end you can’t take home, the expected payout is not the time to find out.
You need to have ongoing information about your practice’s performance by way of regular and routine reports. Too busy to do actually means, too bad, so sad.
The practice environment is changing, and if you don’t know how it is impacting your practice until year’s end, you are setting yourself up for disappointment. It also means neither you nor you practice administrator is doing the job.
Identify the key measures of performance for your practice and specialty. Use information from your specialty society for benchmarks to compare with. Monitor on a monthly basis to understand if there is a trend that is good news, or bad and if bad, dig deeper to understand why.
What reports? Your specialty society can help direct you, but basics such as patient volume by pay source. New patients’ vs existing (Is the practice attracting new volume). The mix of diagnoses and distribution of visit types. And of course, financial information, payments per CPT by payer, and receivables. What is the impact of the growth of patient financial responsibilities on your receivables?
Reports are not the answer. Don’t be too busy to review them with your practice administrator monthly. Set time to review, ask questions, understand changing trends, and if the trends are not what you want, dig deeper to get the answers.
Physician, it your practice and the source of your livelihood/income and you are using web based medical billing software. Practice administrator, its your job, and ultimately your income as well.