Question

Mini Case Study

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.

Questions

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

Answer 1

A key performance indicators is a tool used to measure the performance of an organisation. It is used to evaluate that how effectively the organisation is able to achieve their business objectives . Furthermore ,it tells you and your team understand whether you are taking the right path towards your goal. To be effective a KPI must :-

- be well defined and quantifiable.

- be communicated through out the team members and department.

- be crucial to achieve your goals

- be applicable to your line of business or department.

Choosing the correct KPI is very important step as it will lead to goal achievement and if the correct KPI is not choosen then it will take you away from the right path toward success.

Some of the KPI's the management should monitor are :-

It is divided into four metrics

1. Financial metrics which include :-

- Profit

- Cost

- Line of business/ department revenue verses target

- Cost of goods sold / healthcare services

- Day sales / healthcare services outstanding

- Line of business / department expenses verses budget

2. Customer metrics which includes :-

- customer lifetime value

- customer acquisition cost

- customer satisfaction and retention

- Net promoter score

- Number of customers

3. Process metrics which includes :-

- customer support tickets

- percentage of product/ healthcare services defects

- Line of business / department efficiency measure

4. People metrics which includes :-

- employee turnover rate

- percentage of response to open position

- employee satisfaction