10 Healthcare KPI's Your Practice Needs to Track
Key performance indicators ("KPIs") can provide significant insight into your business' financial well-being and operational performance. Whether you are a single location healthcare practice, have multiple offices, or are a nimble digital health organization, KPI's can provide insightful trends to help your practice accelerate growth.
Patient Cancellations - Life happens and sometimes patients have to cancel their appointment. Whether it is a routine dental cleaning or dermatology check-up, some patients may be unreliable. RiverStone Reporting helps clients evaluate the history of patients cancelling appointments or not showing up for their designated appointment. This can help practices become more efficient in tracking unreliable patients and focus more on reliable patients. Our team goes through messy raw data sets of historical appointment info to provide insights into patients who can be trusted, allowing your practice to generate more efficient scheduling
Production Across Clinicians - Most practices already track production by provider, which allows for a practice to evaluate top-performing doctors. In addition to only evaluating top providers or clinicians, it is also important to evaluate the performance of other clinicians who are staffed throughout the schedule. For example, in dentistry it is important to evaluate not only the lead dentist but also treatment coordinators and hygienists to understand any potential flaws in the system or patient experience. In ABA Therapy, it is important to analyze staffing models across BCBA's and RBT's and not only focus on BCBA hours, which can help to free-up clinician capacity and create more flexible scheduling, thus improving retention.
Procurement Savings - Many healthcare companies are constantly purchasing equipment. Have you ever analyzed your purchase orders across offices? Chances are you are buying the same supplies or equipment across offices but at different price points. Many of the larger medical equipment providers may not catch these 'mis-billings' and your practice could be getting over-charged. It is important to evaluate the data to ensure your practice isn't being double billed or over-paying for the same supplies across offices. Our RiverStone Reporting team can help you evaluate potential procurement savings and help negotiate rates with supplies and equipment providers to generate cost-savings.
3-Month Customer Performance - Many small businesses understand generally speaking how their clients are performing, but many founders may not dig into the details to really understand trends in real-time. If you are a healthcare organization selling products or services to other healthcare companies (B2B) it can be extremely important to stay on top of real-time trends with your largest customers. Our team helps you analyze the last three months in customer performance for your top 20 or top 50 clients. If a large customer begins to decline in performance or pullback on spend it is important to analyze immediately and communicate with the customer around any potential service or quality declines. We help customers analyze recent and run-rate performance around top clients to ensure any pullback in spend or performance is flagged immediately so you can navigate any volatility and maintain strong client relationships.
Payor Rates & Collections - Evaluating payor rates over time can be invaluable to understand general industry trends and any variances across care setting or geography. Going through hundreds of thousands of rows of patient charge and collection data can be tedious, but provide valuable insights into payor trends and collection rates. Our RiverStone Reporting team can help you evaluate large sets of patient data to better understand commercial reimbursement dynamics and how your practice's charges vs. collections are trending. A declining collection rate can have a negative impact on your organization's performance and ability to maintain margins with a fixed cost structure.
Patient & Customer Turnover - Many family and founder-owned businesses track turnover, but do not track the details. Let us help you. Being able to understand voluntary vs. involuntary turnover and reasons for departure whether it is a provider, back-office employee, or client can provide valuable feedback in improving retention and ensuring additional employees or clients do not also leave. We can help your company log turnover reasons as well as track if clients are leaving your practice for services at another competitor to improve your retention. We assist healthcare companies in benchmarking their provider and back-office turnover compared to healthcare and industry norms and can consult on ways to improve retention at your organization.
Cash Flow - Having a strong hold on your company's cash generation can be a very important element to ensure the business is meeting any debt obligations, interest payments, and preserving cash to invest into future growth. We assist clients with 13-week cash flow forecasts to help clients prepare for any large one-time capital expenditures, evaluate net working capital and inventory levels, and budget for any expenses required to grow and scale your business.
Return on investment (ROI) - ROI is such an important indicator if an investment pays off (and within a reasonable timeline). Whether you're opening a de novo location, purchasing new equipment to streamline / automate operations, or onboarding a new third-party vendor it is incredibly important to understand payback periods and how the investment will generate future cash flows for your practice.
Client Cohort Analysis - If your practice has been around for 5+ years it can be insightful to evaluate the growth and run-rate or ramp period of clients by cohort (vintage year). By comparing cohorts you can evaluate if newer client wins are ramping as quickly as old customers who have now likely matured. It can be a great indicator to evaluate if your practice is accelerating growing and in-line with historical ramp.
Debt & Interest Payments - With rising interest rates and a difficult lender market, it can be challenging to find the right debt provider to fund an add-on acquisition or acquire a business. Evaluating interest payments, fixed charge coverage ratios (FCCR), and your company's EBITDA generation to meet variable interest payments is very important. Many companies are faulting with interest payments and struggling to meet monthly or quarterly obligations, which becomes a big headache and takes time and attention away from operating and growing your practice. RiverStone Reporting can help you evaluate your interest rates and company's ability to meet debt obligations going forward.
KPI's are an incredibly insightful way to evaluate the efficiency of your practice's operations and accelerate growth without sacrificing margins. Generating strong cash flow and making operational improvements around procurement, staffing, and automation can drastically change the growth trajectory of your business. Whether you're a local veterinary clinic, a multi-site ABA therapy provider, newly founded specialty home infusion entrepreneur, or mature dental practice, we can find ways to help identify cost savings and drive growth. Reach out to RiverStone Reporting today - we love helping healthcare clients identify trends, win new customers and accelerate growth to gain market share.