It’s no longer enough to focus solely on EBITDA, margin, cash flow, and other financial metrics. Today, CFOs are also required to monitor quality outcomes that are tied to reimbursement.
Becker’s Hospital Review recently released an article that shared the thoughts of six healthcare CFOs and how they are handling this shift in the industry. Each of the CFOs offered the metrics they track, which were compiled into a dashboard for their peers.
Some of the key metrics the CFOs shared include
- Operating margin
- Patient experience
- Productivity and operational efficiency
- Maximum debt service coverage ratio
- Daily cash balance and cash collections
- Admissions and readmissions
- Daily census
- Daily emergency department activity
- HCAHPS
- Gross revenue and payer mix of revenue
- Length of stay by service line
- Observation stays
- Outpatient registrations
- Healthcare complexity codes
- Patient populations that drive costs the most
- Occupancy by service line
- Staff overtime
- Unrestricted days cash on hand
- Surgeries
- Variance between actual and budgeted FTEs
- Community benefit information for tax exemption preservation for nonprofits
- Covered lives, premium revenue and cost per member (if the organization runs a health plan
Read the Article