05 Jan How Did 2017 Look for your Practice?
Now that 2017 has come to an end, it’s time to take a look back at the year that was, and review your businesses’ financial performance. If you don’t typically do a deep dive look back, consider starting this practice now. Work with your accountant for the financial reports you’ll need for this review.
Looking at your accountant’s financial reports will give you an idea of how your practice is operating overall. This will provide you with the information you need to make any necessary changes to elements of the management of the practice. However, this will not necessarily tell you what you need to know about your revenue cycle performance.
To dig into your revenue cycle performance, you will need to look at reports that provide the detail behind the income numbers you’re looking at on the accountant’s reports. You’ll want to look at your accounts receivable aging, your days in accounts receivable, and other key performance indicators for revenue cycle such as your net collection rate, percentage of A/R due from patients, and percentage of A/R aged more than 120 days.
After reviewing the numbers, are you happy with your 2017 financial performance? Are there areas you would like to improve? Are you concerned about what you’re seeing or feeling overwhelmed with determining what areas need to be addressed in order to improve your performance? A streamlined and efficient revenue cycle is critical to the success of your practice. For some practices, outsourcing certain internal processes might make sense to help address these business challenges that may be putting your practice at financial risk.
If you decide that changes need to be made to your revenue cycle management, you don’t have to tackle the problem alone. Hiring outside expertise just may be the right solution and prove to be better for you, your overall practice and your patients.