Financial Reporting for the Medical Practice

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Financial Reporting for the Medical Practice

• Medical Group Management Association
• Healthcare Financial Managers Association

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Your Presenters

• Chris Keefe
• CFO
• Metro Imaging

• Sharon Sagarra
• Controller
• Radiologic Imaging Consultants

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Preview

• Volume
• Collection/reimbursement
• A/R
• Productivity
• Financial statements

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Who is your audience?

• Doctor/CEO
• Doctors/owners
• Doctors/non-owners
• Management
• Staff
• Bank
• Outside accountant

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What are the Hot Buttons?

• Volume
• Collection
• Physician productivity
• Billing expense
• Staffing expense
• Others?

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Volume Reporting
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Volume by Type of Service
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Exam Comparison
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Monitoring Collections, Reimbursement, Billing
Performance
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Receipts by DOS
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GHP Collections by Site
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Reimbursement/Collection/Mix
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Collection Rates
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Writeoffs
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A/R Trends
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Accounts Receivable Reconciliation
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Productivity Monitoring-Physicians
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CPT by Physician
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Volumes for Key Indicators
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Exams Read per FTE
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Work RVUs per FTE Radiologist by Site
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Productivity Monitoring-Staff
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Staff Productivity
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Overtime Monitoring
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Tardy Monitoring
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Biller Productivity
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Financial Statements
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Chart of Accounts

• MGMA Chart of Accounts
• MGMA Cost Survey
• Outside Accountants Chart of Accounts

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Cash vs Accrual

• Cash is easy
• Tax basis
• Docs understand it
• Expenses fluctuate
• Impact of docs vacation

• Accrual is more work
• Must estimate net revenue
• Rev Expenses matched to proper period
• Malpractice spread out

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Modified Cash

• Best of both worlds
• Spread large expenses
• Book depreciation
• Flexible
• Easy

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Contractual Allowance

• Can be difficult to estimate
• How do you know when it is right?
• How long does it take to collect every penny?
• Changes every year

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Timing of Financial Statements

• When should your F/S be ready?
• On the first?
• 10 days after month-end
• 15 days after month-end
• 25 days after month-end

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Impact of Physician Comp

• Your physician compensation formula can drive
  your F/S format
• Expenses by doctor
• Car, CME, travel, Dues, Licenses
• Their nurse, their staff, their space..
• Separate cost centers for each doctor?
• How far do you go?

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Financial Statements Samples
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Basic Income Statement
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Income Statement to Budget
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Trend Report 12 rolling months
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Trend Report Income Stmt
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Net Profit per FTE
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Balance Sheet

• How do you use it?
• Balance sheet ratios
• Debt to equityTotal debt/equity
• What equity?????
• Current ratioCurrent assets/current liab

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12 Month Trend Report Balance Sheet

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General Ledger Analysis
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RVU Report
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Cash Flow
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Sample Reporting for Physician Compensation
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Direct expenses

• Phys comp benefit
• Prof liab ins
• Employee salaries
• Dues, memberships
• CME, travel
• Meals, entertainment

• Rent
• Marketing
• Retirement plan
• Health insurance
• Auto

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Variable expenses

• Employee salaries
• Employee benefits
• Medical supplies
• Drugs
• Physician services
• Transcription
• Data processing

• Billing/collection
• Telephone
• Postage

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Fixed expenses

• Employee salaries
• Employee benefits
• Rent
• Equipment leases
• Building maint
• Property taxes
• Interest

• Equipment maint
• Legal and acctg
• Utilities
• Telephone
• Depreciation

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In conclusion

• They are your reports they should help you do
  your job
• For doctors no errors allowed
• Use graphs you can skew them anyway you want