to be 30–45 days’ worth of expenses. If they are more than that, you will incur interest or late payment fees.” Clinical indicators, such as trans- fers, incidents and cancellations should be reviewed on a monthly basis, he rec- ommends. Patient satisfaction needs to be reviewed monthly or quarterly. “Also, ask yourself if any new phy-

sicians have utilized your facility,” he says. “Ask about their experience and their patients’ experience and if you could do anything to improve it, because new physicians help the facility grow.” Finally, Martin recommends, “ask

yourself how quickly you are paying off long-term debts.”

Iowa City Ambulatory Surgical Center LLC Kelly Durian, executive director of Iowa City Ambulatory Surgical Center

Case volume is important for scheduling staff, and it is a good predictor of profitability for the month you are in. Cash is the lifeblood of any facility. All administrators should know these two numbers at all times.”

— Reed Martin, Surgical Management Professionals

LLC in Iowa City, Iowa, looks at three types of indicators: financial, produc- tivity and quality. For financial, “check your financial

reports on a monthly basis,” he says. “I look at the number of cases for the month, overall and by specialty, and

compare to the budget to see how we are tracking.” He examines net rev- enue per case, amount of revenue broken down by specialty and total expenses per case broken down by labor expenses and supplies, including drugs and implants. Durian also keeps track of the over- all deduction percentage. “Keep in mind that Medicare/Medicaid will have a higher deduction percentage as opposed to commercial insurers,” he says. “The other figures that you want to keep a handle on are your profit per case and days in AR. Track your profit per case against your budget to see how you are doing. Your days in AR should have a benchmark of 35–40 days. If your number is more than 35–40, you might have a problem. You might not be cod- ing properly, and your bills are being rejected and having to be resubmitted.”



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