Characteristics of Better-Performing Practices

“Better Performers” who responded to the Medical Group Management Association’s annual Cost Survey Report demonstrate certain behaviors that may be the key to their financial success, the MGMA reported this week. 

For example, the data show better-performing medical practices:

• Use formal patient satisfaction surveys. More than 30 percent benchmark results to other practices and more than 60 percent educate physicians about behavior.

*Note: The NAOHP plans to introduce a patient satisfaction benchmarking program for occupational heath providers in 2011.

• Spent more on information technology operating expenses than their counterparts (with the exception of multi-specialty practices).
• Report  less bad debt to fee-for-service activity per full-time-equivalent (FTE) physician.
• Report lower total operating costs as a percentage of total medical revenue.
• Consistently note more procedures per FTE physician.  
• Have a lower percentage of total A/R in the 120-plus-day category than their counterparts, indicating that strong cash flow is crucial to the success of any practice.

Meanwhile, organizations deemed “better-performing medical practices” by the MGMA's Performance and Practices of Successful Medical Groups: 2010 Report Based on 2009 Data excelled in four categories. 

1. profitability and cost management;
2. productivity, capacity and staffing;
3. accounts receivable and collections; and
4. patient satisfaction. 

And their performance was at least 10 percentage points better than their peers in numerous other categories.

The data is based on responses from 544 practices that responded to the MGMA 2010 Cost Survey and a supplemental questionnaire that assessed practices and procedures. 

http://www.mgma.com/pm/article.aspx?id=9198