Are benchmark comparisons misleading you?
Ratio analysis is a common approach used
by experienced medical practice managers to analyze practice income
statements. Dividing various expense categories by practice net patient
revenues, and comparing the resulting ratios to national benchmarks, is a
powerful management tool. In established and financially viable medical
practices, this type of analysis is a reliable guide to performance
In practices that are
experiencing significant financial losses, or in new start-up practices,
ratio analysis and benchmarking can lead managers to implement tactics
that actually worsen performance.
As a result, many hospital-owned practices (and some
private practices) fall victim to expense reduction tactics that reduce
customer service and physician productivity, exacerbating performance
learn more about Gap Analysis contact
The Halley Consulting Group's Gap Analysis allows managers to
effectively use valuable ratio analysis and benchmarking even with
underperforming or new medical practices.
The model "normalizes" practice
expertise ratios around appropriate revenue levels in order to identify
revenue and expense challenges, allowing managers to focus on the real
causes of financial performance problems rather than reacting to
True revenue enhancement and expense control
opportunities become readily apparent in a simple, understandable table
further illustrated by a
revenue and expense bar graph highlighting
performance against various benchmarks.
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614-899-7325 Phone 614-898-9226 Fax
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