Question

The Metropolitan Medical Group (MMG) merged with the Oak Grove Medical Group(OGMG). The Oak Grove Medical Group has four offices and owns the medical office build-ing where their imaging and radiology lab and physical therapy and diagnostic laboratory cen-ters are located.Although the size of staffs in both practices is about the same, OGMG has a very different fi-nancial structure. Not only are their receivables a lot higher, but the aging of their receivables ismuch older. This has caused them to miss payments to their vendors, resulting in a higher ac-counts payable balance. Further analysis revealed that some of the doctors from remote officeshave referred patients for laboratory tests and to specialists outside the practice when these sametests or specialists are available internally at other offices.The room that houses the network servers is not climate controlled, secure, or backed upoff-site.

10–6. What key performance indicators should the management of the practice monitor?

Answer 1

10.6

The Key Performance Indicators (KPIs) the management should monitor are:

• Internal sale generated through references for imaging, radiology, physical therapy and diagnostic tests.
• Days to collection of receivables, with 3 to 5 buckets, each bucket with lesser number given higher weightage
• Records maintained and system adherance (which will have back up in case of server outage)