pracTice managemenT | fInAnCIAlMAnAGEMEnT |
benchmarking For the
PAGE S. PILAND President, Core Healthcare Consulting:
www.corehc.com
email
PSPiland@CoreHC.com Financial
aesthetic medical practice
Page S. Piland provides some useful tips
and information for the optimal financial management of your practice
T 72 ❚ he financial
performance of a cosmetic practice is, next to patient care,
one the most of important components of practice.
however, it often receives little attention until a problem arises that calls attention to it. frequently, this problem is of a magnitude that it affects the viability of the practice and its ability to meet financial obligations. Many physicians have
become complacent with regard to the financial health of their practice. In many practices,
the
in a timely manner. Knowing the necessity of measuring the financial health of your practice is the first vital step. Carving out the time to actually do this is the second. One cautionary note to remember
There are a number of ways to inspect the
financials are left to the office manager and the physician defers to his staff. In the author’s experience, this is a mistake because no one has more of a vested interest in the financial health of the practice than the physician. In order to make good decisions, it is imperative to have the right information and to act on it
financial health of a medical practice, but it is
recommended to compare
your practice’s performance to both internal and external metrics.
while analysing financial data is to avoid the pitfall of ‘analysis paralysis’. The goal of any analysis is to gather pertinent information and use it to take action. Physicians who spend too much time diving deep into the data without confronting their problems will become victims of data overload. This article will help you to identify significant numbers and understand the metrics that will define the success or failure of your practice.
Inspect There are a number of ways
to inspect the financial health of a medical practice, but it is recommended to compare your practice’s performance to both internal and external metrics. Internal metrics include a profit and loss
May 2011 |
prime-journal.com
statement prepared by an accountant, productivity reports, payroll summary reports,
and
an accounts receivable ageing analysis. Areas that deserve special attention include collections, new and existing patient encounters, fixed and variable overhead ratios, net collected revenue by provider, and revenue per patient encounter. Comparing this with previous years’ data will help to identify trends that define the success or failure of your practice.
Internal assessment Evaluate Once you have completed the internal assessment, it is essential to understand how it compares with other practices. External practice data are available from many sources, such as the American Academy of Dermatology (AAD), American Society for Aesthetic Plastic Surgery (ASAPS), and American Society of Plastic Surgeons (ASPS), The Health Care Group, Kline & Company, and the BSM Consulting Group/Allergan Practice Consulting.
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