“Doing Well to Do Well” – Financial Health Vital Signs MGMA Data Experience 2013

1. “Doing Well to Do Well” – Financial Health Vital Signs MGMA Data Experience 2013

2. Objectives • List vital metrics in determining practice financial health. • Identify importance of meaningful analytics to delivering quality health care • Identify action steps to convert metrics into practice improvement.

3. Traditional Practice Questions • How well is my practice performing financially? • Are we being under paid? • How can we better manage A/R? • How can I score payer performance? • How well are we coding our procedures? • Are we doing better/worse than others?

4. Why Business Intelligence? • Data driven decision making is the future of healthcare • Decisions are driven by the following criteria: - Financial Performance - Clinical Quality Measures - Productivity and Performance Benchmarking - Marketing and Referral Analysis - Population Management - Health Risk and Wellness Assessments • Independent clinics in a variety of specialties are financially struggling and having difficulty keeping up with market influences and demand • Clinics need deeper insight to make the best possible decisions • Clinics need technology and information to help drive success

5. Data Experience Terminology • Key Performance Indicators (KPIs) • The “indication” and evaluation success • Performance Metric • The “measure” of activities and performance • Benchmarking • “Compare” performance and metrics to other strong performing entities • Thresholds • A “level” or rate by which performance is negatively or positively reached and requires attention

6. Terminology Cont’d • Target • Proceeding or improving to a “specific” goal • Normalize • Using calculations to take data from fragmented elements to data that generates the “norm” or desired value • Reduce redundancy and “clean” • Aggregate • A “whole” produced by several individual elements

7. Establishing KPIs • Developing KPIs usually follows a process of: • Determine critical processes • Identify specific, quantifiable outputs of data • Establish targets against which results can be measured and scored • Establish a maintenance plan

8. Rubik’s Cube Theory ?

9. Steps to your Data Experience

10. Example Critical Processes

11. Example Critical Processes Cont’d

12. Example Critical Processes Cont’d

13. Determine Metrics - Example Vital Metrics

14. Determine Benchmarks - Example

15. MGMA Benchmark Data www.mgma.com/benchmarking MGMA is armed with accurate, up-to-date data on the industry and comparable data on your practice: • Physician Compensation • Productivity • Number of Patients • Staffing • Revenue • Operating Expenses • Accounts Receivable

16. Determine Thresholds - Example • Example Threshold Chart

17. Do you have the right tools?

18. Possible Analysis Tools • Practice Management Reporting • EHR Reporting • Clearinghouse Reporting • Data Feeds into Excel • Third Party Reporting • Business Intelligence Platform

19. “Doing Well to Do Well” – Financial Health Vital Signs MGMA Data Experience 2013