Tracking Your HME Performance Metrics: Is Your Information Easily Accessible?
By: Jon Love, Rock-Pond Solutions
In my work with HME providers over the years, I have noticed that the time required to run reports is a common source of frustration. That frustration is compounded when, a week later, the data is no longer valid, and the time-consuming process has to start over again.
However, monitoring your business performance today, tomorrow, and next week doesn’t have to be a tedious, inefficient process. With the right tools, you can automate your data management and understand key performance indicators (KPIs) that can guide your company’s progress.
Here are several metrics that HME providers should review each week, so they understand how their businesses are performing and where they are headed at all times.
- Accounts Receivable/Revenue Management: Know where your A/R stands. Metrics such as outstanding A/R, overall DSO, DSO by payer source, bad debt reserve, adjustments aging, denials posted, payment aging, revenue detail per payer, and on-hold revenue all address the amounts of money you are waiting to be paid and the reasons for delays.
- Inventory Tracking: Know how much inventory you have on hand at all times. Monitor inventory turnover, physical inventory counts by location, and reasons for changes in quantities.
- Profitability Reporting: Identify which medical supplies or services generate the most revenue for your business. Search for your most profitable products, so you can make adjustments as needed.
- Staff Productivity Tracking: Track your staff’s weekly output. Metrics such as profitability by sales rep or employee productivity output help pinpoint areas for improvement.
- Security: Control who has access to your weekly reports. Make sure your user privileges are defined appropriately, so information is available to staff according to their needs at all times.
If your monitoring metrics and methods need to be updated, you are not alone. See how CareTend’s business intelligence reporting automates reporting and easily captures the above metrics in half the time compared to manual reporting processes.