Organizations deemed “better-performing medical practices” by the MGMA Performance and Practices of Successful Medical Groups: 2014 Report Based on 2013 Data excelled in four performance-management categories: profitability and cost management; productivity, capacity and staffing; accounts receivable and collections; and patient satisfaction. The practices designated as better performers in these areas were culled from 2,518 respondents to the MGMA 2014 Cost Survey.
Profitability and cost management
In this category, better-performing multispecialty practices reported a lower total operating cost as a percent of total medical revenue than other groups (55.91 percent compared to 70.42 percent).
“Medical practices that actively monitor their operating costs and use benchmarking data and tools to assess their performance are positioned for long-term success and sustainability,” said Todd Evenson, MGMA vice president of data solutions and consulting services.
Accounts receivable and collections
Medical groups designated as better performing reported collecting receivables more quickly than their peers. Better-performing multispecialty practices indicated that only 8.05 percent of their total accounts receivable (A/R) was in the 120-plus day category.
Evenson asserts that “this metric is a strong indicator of healthy financial management, and better-performing medical practices have the right procedures and processes in place to do this efficiently.”
Productivity, capacity and staffing
Better-performing medical practices in this area implemented operational efficiencies to ensure strong provider productivity, including employing non-physician providers such as physician assistants, nurse practitioners and certified nurse anesthetists, as well as ensuring efficient patient flow throughout the practice. For instance, better-performing multispecialty practices indicated that they leverage work from clinical support staff at a higher ratio, a reported 6.33 clinical support staff per full-time-equivalent (FTE) physician versus 4.31 in other groups.