It is no secret that hospital employed physician practices lose between $50,000 to $200,000 per physician annually. In fact, according to the Medical Group Management Association, losses in excess of $200,000 per hospital are not uncommon. As health care organizations drive toward value-based care, they must focus on additional ways to enhance employed physician revenue through increased operational efficiency.
When determining the underlying causes of physician loss, we find many health care organizations don’t know where to begin. At nThrive, we believe in order to construct an effective and immediate improvement plan you must look to your data for answers.
Leverage Your Universe of Data
To understand the root causes of physician practice losses, take a scientific approach to leveraging your data. The data analysis process begins by gathering and integrating physician practice billing, payroll and financial data from disparate systems into one dataset. The raw data will then need to be cleaned, aggregated and transformed into digestible physician practice intelligence. By doing so, you gain deep visibility into all physician practice data to secure high-value financial returns and help you move towards high-value care. Clarity, direction and measurable performance results are inherent in our data-driven methodologies and processes.
Pinpoint Performance Gaps
To identify physician performance gaps, you must determine the main drivers that lead to economic success. nThrive has identified the ten economic drivers for which the best opportunities lie. The ten drivers include both revenue and cost drivers. The revenue drivers are productivity, visit coding, utilization, charge master, payer mix, rates, and revenue cycle. The cost drivers include staff costs, other miscellaneous costs and physician compensation.
To accurately assess each driver, performance should be measured against clearly defined indicators of success. nThrive applies nationally aggregated benchmarks and our proprietary algorithms to the data to calculate, and quantifies the gaps for each driver down to the individual physician level, allowing for organizations to create customizable reporting groups that best reflect their organization. The results are data-driven; communicating quantifiable results across all stakeholders becomes highly effective.
Develop a Management Action Plan
The urgency to address each of the quantified gaps varies, but it is imperative an action plan to respond to performance gaps be put into place quickly. Include in the action plan a method to monitor progress in real-time, to allow for adjustments along the way. Comprehensive reporting to all stakeholders is also necessary as you can’t fix what you can’t see. Physicians need to be shown where opportunities for growth lie so they can take action. Data-driven conversations drive positive action.
The ability to reduce physician practice loss and financial loss grows in importance as payments and revenues decline on the path towards value-based health care. Health care organizations can reduce the losses, and attain financial performance level goals. The key is to leverage your universe of data to quantify losses across the essential 10 economic drivers of a physician practice.
nThrive can help you leverage your data to improve your physician practice economics through empirically based business decisions. Our deep understanding of both health care economics and data analytics help you identify opportunity gaps in your physician practices and provide the framework essential to more effectively manage employed physician losses.
To learn how you can successfully address physician practice losses, join us for our education webinar. Click here for session details and registration.