Health Information Management: Clinical and Service Quality (Part 2)

Health Information Management: Clinical and Service Quality (Part 2)

Introduction

Metrics refers to the quantitative measurement of a business unit. There are several types of metrics related to businesses, such as financial metrics, customer satisfaction. The metrics in each case describes the several ways of measuring the subject. Financial metrics is the core of any business unit since the focus is always on the amount of profit it makes. Each financial metric explains a distinctive feature of a body of financial data. In other words, they are “descriptive statistics” of the financial accounts. Establishing a fifteen physician's satellite clinic requires the in-depth analysis of financial metrics, for its profit gaining success (Encyclopedia of Business Terms and Methods, 2008).

Discussion

Revenue Generation

Financial metrics in view of the revenue generation from a satellite clinic includes the following:

Accounts Receivable (AR)

This is one of the most important metric that requires significant attention from the business administration. The reports of AR should be evaluated on a regular basis, to know where the business is heading. It may gradually rise, every month. Action should be taken when it reaches above 35 to 40 days (Page, 2011)

Real Revenue Growth

The revenue growth shows the real growth of a business unit, in terms of the net profit gained. It needs to be reviewed during the month. The business administrators should compare the incoming payments every week, keeping the amount aimed for the month in mind. By mid-month, the business should be able to collect half of the amount that was aimed (Page, 2011).

Net Revenue of the month

In most setups, the estimation of net revenue occurs by surveying how much the business unit have billed, rather than how much they will actually par according to contracts. Automatic billing system is an effective method of ...