General Financial Performance

• Business Processes that Generate Income
• Understanding Your Reimbursements and Fee Schedules
• Payor Mix Analysis
• The Billing Process
• Using Your Computer System
• Collection Target and Performance Analysis
• Calculating Collection Target
• Accounts Receivable Analysis
• Overhead Cost Analysis
• 13 Tips for Effective Billing
• Financial Performance Analysis and Reports
• Monitoring Third-Party Payments
• Monthly Management Reports
• Managing Staff Costs
• Relative Value Units - a history and calculations

General Practice Management

• How to Have Your Staff Be Effective
• The Myth That Physicians Are Not Trained In Business
• Co-Employment/Staff Leasing
• Computer Selection, Part I
• End of Year Opportunities
• Incentive Compensation for Optometrists and Opticians
• Financing Eyecare Services
• Outsourcing in Ophthalmology Practices
• Medical Equipment Acquisition
• Staff Incentives and Bonuses

FINANCIAL PERFORMANCE ANALYSIS AND REPORTS

In the last issue we laid the groundwork for a monthly reporting package. We showed how to prepare reports of clinical activity and patient type. In this issue we’ll use the data from those reports in describing the reporting of collection performance, accounts receivable (AR), and practice expense.  

Collection Performance  
There are several ways to display collection performance in a report. Because very few computer systems can display a revenue flow report of this type, in most cases you’ll have to build this table on a spreadsheet, using data from the billing computer system. Here is an example (the acronym GCR refers to Gross Collection Ratio):

This table shows how revenue flows into the practice. All of the collections are tied to the charges that generated them.  

Another format for the same information is as follows: