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Overview on healthcare KPIs
KPIs are Key Performance Indicators and within healthcare, they refer to target objectives that allow your business to track the success of its operations. They are specifically developed by practices so that the business can focus on areas that require improvement and work to create an environment that is beneficial to both patients and practitioners. KPIs are also frequently used to compare performance with other healthcare businesses and competitors to determine where the practice is performing well, and where they might need to improve.
Importance of tracking KPIs for your private practice
Setting and tracking KPIs is one of the most effective ways that your business can achieve growth and success. They can target a wide range of different areas, both clinical and administrative, including things like how to reduce costs by going paperless, measures to deal with difficult patients, improving revenue, and creating more effective schedules. Another additional advantage of tracking KPIs is that it allows you to develop a more accurate understanding of the current healthcare industry and how certain trends are impacting your work. A fair amount of time and effort goes into creating KPIs and these should always reflect the current industry trends. When it comes time to look back and reflect on any notable changes that have occurred within your business, you will be able to identify how your practice has adjusted to the fluid healthcare industry, providing you with data to support future growth. This type of analytical information is extremely valuable, as you will be able to amend your budget plans, generate new goals for the future and continuously focus on improving clinical outcomes for your patients.
KPIs for measuring healthcare efficiency
All healthcare businesses should constantly be looking for ways to improve efficiency and there are certain KPIs that can target this operational change.
Patient wait times
One of the biggest issues that face healthcare businesses is patient wait times. Even with fantastic organization and a good schedule, events like patient no-shows and urgent walk-ins can result in extended wait times. Whilst there is some information that needs to be collected during check-in and there are certain factors involved with patient privacy laws, it is always a good idea to keep wait times as short as possible. Establishing a KPI that focuses on reducing wait times will not only lead to a more efficient schedule, but will also help increase patient satisfaction.
Patient appointments
Every healthcare business should track their patient appointments and Patient Average Visit (PVA). This will produce information concerning the average number of appointments that occur in a day, when the busiest times are and whether there are any unfilled booking slots. Knowing this type of data can help your business produce a more efficient schedule, ensuring the maximum number of patients are seen.
Patient-to-staff ratio
Although ideal patient-to-staff ratios will vary depending on the healthcare business, it can be a good idea to have more staff members than patients at a clinic. This helps demonstrate to patients that their health is a priority, whilst also facilitating a greater number of walk-in appointments.
Profitability metrics to measure the success of your practice
Another area that is important for KPIs is profitability. The only way a business can stay afloat is if they are continuously making money, and you need to have a way of tracking this data.
Average rates per patient treatment
It is important to have an understanding of how much money you are making from the treatments you offer. Whilst this isn’t necessarily an area where you can consistently improve revenue, it can work as a guide to setting the right prices for your practice and determining the benefit of treatment for both your business and your patients.
Cash Flow (Expenses and revenue)
A basic understanding of finances requires knowing both expenses and revenue. Your business should be tracking how much it is spending and how much it is making so you can determine whether a profit is available and how sustainable this type of cash flow is.
Average reimbursement per treatment
Reimbursement is complicated, and you should always know the payments that your patients make at the time of their appointment, and how much is reimbursed by insurance providers.
Time to process insurance
As the billing process occurs, you should collect data indicating the average amount of time it takes until you are reimbursed. Things like claim rejections and denials may skew this data slightly, but all of this information is necessary for you to have an accurate overview of your profitability.
KPIs for measuring staff/employee efficiency
The final area where KPIs are highly applicable is employee efficiency. Just like any other business, operating a successful healthcare practice is largely dependent on workflow and the productivity of its staff.
Employee absenteeism
Attendance is a critical aspect of ensuring productivity, and it is always a good idea to track absenteeism. There should be protocols in place to encourage staff to come to work prepared for an efficient day, and in the case of high absenteeism rates, disciplinary steps may need to be taken. Putting in the effort to improve attendance rates will likely require a physical environment policy for your healthcare business, so you can create a positive professional atmosphere whilst still completing the necessary work.
Staff turnover
Staff turnover numbers are indicative of whether your hiring process is working effectively, or if this area may require some improvement. There will always be a wide range of reasons for high turnover rates, and the effort to understand these will lead to a loyal and committed healthcare team.
Use a healthcare dashboard (practice management software) to stream your business
Generating productivity through KPIs is an intrinsic aspect of managing a healthcare business, and whilst this takes a reasonable amount of time and resources, there are certain tools available to help you. Practice management software refers to technology that has been specifically designed to streamline a wide range of administrative tasks within a healthcare business, saving you significant amounts of time and allowing you to focus on treating your patients and generating revenue. Carepatron offers a highly sophisticated practice management software that is integrated with numerous features, including clinical documentation, note templates, medical billing tools, appointment scheduling, and a patient portal. By implementing this type of system into your business, you will be facilitating better relationships with both your staff and your patients, and improving the overall transparency of the healthcare system. Carepatron is available in two different pricing packages which makes it suitable for different-sized healthcare businesses - used by over 10,000 practices, it is also adaptable to any fields of care. Deciding to implement an effective practice management software will help to brand your business as visually appealing to prospective patients, helping to broaden your clientele and achieve sustainable growth. With the healthcare industry being revolutionized by newly developed technology, we could not recommend more the importance of researching and investing in these systems - despite the upfront cost, they are guaranteed to save you excessive amounts of both time and money in the long run.
Take home message
As you have seen, KPIs play a large role in guiding healthcare businesses to success. By identifying different areas within your practice that should be continuously tracked, you are facilitating sustainable growth for your practice and locating specific components that may require improvement. KPIs can be diverse in the information they target, including practice waitlist management, creating a better waiting room experience, improving staff and patient loyalty, and generating higher profitability.
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