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 improvement.

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 problems.

 

To learn more about Gap Analysis contact
hcg-info1@halleyconsulting.com

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 misleading results. 

 

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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