Key Performance Indicators: The Vital Signs of Your...
Transcript of Key Performance Indicators: The Vital Signs of Your...
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Key Performance Indicators: The Vital Signs of Your Practice
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Key Performance Indicators
Presented by:
Michelle Campoli, CVT, CVPM• Performance Improvement Specialist• IDEXX LaboratoriesChristy Johnson, CVPM, PHR• Administrator and Co-owner• Pampered Pet Health Center in Port Charlotte, Florida
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Session Objectives
• Define Key Performance Indicators (KPIs)
• Identify KPIs for your practice• How to capture and measure KPIs• Determine reporting frequency
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You can only manage what you measure!
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Key Performance Indicators
Definition:
A measurement of critical performance activity in a given period of time
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Measuring Up:Sources for Industry Benchmarks
• American Animal Hospital Association (AAHA)• American Veterinary Medical Association (AVMA)• Veterinary Hospital Manager’s Association (VHMA)• National Commission of Veterinary Economic Issues (NCVEI)• Veterinary Economics®
• The Well-Managed Practice® Study • IDEXX Cornerstone ® Dashboard• Your peers here and YOURSELF!
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Using Industry Benchmarks• Yourself
• Compare month to month• Compare year to year
Use comparable factors when looking at industry benchmarks:
• Practice type (small animal, general, specialty)• Location (geography and type—urban, rural)• Practice size (<2 FTE DVMs, >6 FTE DVMs)
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FinancialKey Performance Indicators
•Revenue• Invoices•Average client transaction•Accounts receivable•Service/Inventory ratio•Fee variances and discounts• Inventory margins
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FinancialKey Performance Indicators
Revenue•Total revenue•Per classification and/or Revenue Center•Per doctor
• 5x annual salary
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FinancialKey Performance Indicators
Invoices•Total number of invoices
• 250-500 per month per FTE DVM• 400-700 per month for hospital
•Per doctor• 250–500 per month based on practice type
•Per client•Per species
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Financial Key Performance Indicators
Average client transaction (ACT)•Summary ACT•Per doctor
Invoices and ACT•Always measured together!
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FinancialKey Performance Indicators
Accounts receivable (A/R)•Overall A/R
• 1% of annual revenues•Age of A/R
• Current, 30-day, 60-day, 90-day balances•Per doctor
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Financial Key Performance Indicators
Service/Inventory Ratios•Hospital
• 70/30 (dependent on practice type)•Per doctor
• 80/20 (dependent on practice type)
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FinancialKey Performance Indicators
Fee variances and discounts
Hospital• <1–2% of total revenues
Per doctor Per client
Per discount type Per item
• Frequency• Specific items• Amounts
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FinancialKey Performance Indicators
Inventory Margins
•Minimum 40% to cover all ordering and holding costs•Market commodity vs. exclusives
• Example: Flea medication vs. holistic remedy•Doctor production considerations
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Compliance
Key Performance Indicators
• Reminder compliance rates• Services per species group• Services per age group• Diet/Diagnosis compliance• Chronic medication compliance
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Key Performance Indicators
• Reminder compliance rates• 87% average1
• Use multiple modalities to increase reminder compliance
1. American Animal Hospital Association (AAHA). The Path to High-Quality Care: Practical Tips for Improving Compliance. Lakewood, CO: AAHA Press; May 2003.
Compliance
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Key Performance Indicators
• Services per species/age group• Practice determined• Dentistry, Preventative Care (Wellness) testing
commonly tracked• Preventative Care Plans
Compliance
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Key Performance Indicators
• Diet/Diagnosis compliance• 18–19% average1
• Chronic medication compliance• Monitoring compliance increases overall compliance • 55% when not monitored1
• 78% when monitored regularly1
Compliance
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Efficiency
Key Performance Indicators
•Total appointment times•Appointment fill/show rate• Inventory turn rates•ABC inventory analysis
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EfficiencyKey Performance Indicators
•Total Appointment times• By doctor, reason for visit, day of the week
020406080
Thur Monday
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Key Performance Indicators
• Appointment fill/show rate• Appointments per doctor• Appointments per day• Appointments per reason for visit• No show, cancelled appointments
Efficiency
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Key Performance Indicators
• Inventory turn rates• 8–12 turns annually on top 20% of items• 80/20 rule
• ABC Inventory AnalysisA = highest volume in sales/cost
• Count monthlyB = medium volume in sales/cost
• Count quarterlyC = low volume items in sales/cost
• Count twice a year
Efficiency
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Other KPIs
Key Performance Indicators
• New clients• New patients• Client retention rates• Client referrals• Patient visits• Client visits
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Key Performance Indicators
• New clients• 20–30 new clients per FTE doctor• Based on geography and practice type
Other KPIs
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Key Performance Indicators
•New patients• Similar to or greater than new
client numbers• Client retention rates
• % of active clients seen• % of active patients seen
Other KPIs
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Key Performance Indicators
•Client referrals• Tracked for every new client!• Should always be 100%• Use to guide your marketing decisions
• Patient visits• Minimum 2 visits per year
• Client visits• 3.9–4.3 (median and average-AAHA1)
Other KPIs
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Capturing and Measuring
• End of period reports• Snapshot• Performance tracker• Inventory reports
• Appointment Scheduler• Compliance Assessment Tool• Client/Patient report builder• Microsoft® Excel
• IDEXX Cornerstone ® Dashboard
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End-of-period reports
Key Performance Indicators
• Accounts Receivable (EOM)• Cost of Goods Sold (EOM)• Service and Inventory Sales (EOD, EOM, EOY)• New Client Report (EOD, EOM, EOY)• Summary reports (Daily, Monthly, Yearly)• Discount reports (EOD, EOM)• Staff Commission
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End of Period Reports
Key Performance Indicators
• Standard Fee Exception (EOD)• Statistics by species (EOD, EOM, EOY)• Statistics by staff (EOD, EOM, EOY)• Payment by Type (EOD)
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Snapshot
Key Performance Indicators
• Based on EOM closing periods• Per month or multiple-month period options• Graphing options• Reports by practice, staff and species
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Performance Tracker
Key Performance Indicators
• Based on EOM closing periods for tracking• Reports by doctor, client, patient and reminders• Gross, net and average values• Doctor statistics including service/inventory items sold• Client and patient statistics• Future, overdue and missing reminders
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Inventory Reports
Key Performance Indicators
• Inventory audit report for ‘sales’ of linked items• Inventory turnover • Inventory cost • Inventory profit analysis
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Appointment Scheduler
Key Performance Indicators
•Appointment summary•Appointment Tickler Report•Census report (patient report)
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Compliance Assessment Tool
Key Performance Indicators
• Health-care protocols• Missing services• Protocol alerts• Medication monitoring compliance•Compliance Reporting
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Client/Patient Report Builder
Key Performance Indicators
• Customizable reports• ‘New Client’ report• Missing services• Medication monitoring compliance
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Microsoft® Excel
Key Performance Indicators
•Save Cornerstone® reports to Excel •Additional data fields available•Create additional filter and ordering options•Pivot tables•Graphing capabilities
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IDEXX Cornerstone® DashboardKey Performance Indicators
• FREE Monthly report• Compares your practice to your region
• Based on practices of a similar size
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Key Performance Indicators
• Total revenue with service/inventory ratio• Number of clients/patients seen• Average per client/patient• Number of invoices, average invoice• Revenue per species, day of the week, postal code• Top five service and inventory items sold• Workstation analysis
IDEXX Cornerstone® Dashboard: Features
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Enabling the IDEXX Cornerstone® Dashboard
Key Performance Indicators
•Tools menu•Data Service Agreement
• Select Yes, Please• Accept terms and conditions
•Verify email address to receive your FREE monthly report at 1-888-557-6517.
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Reporting Frequency
Key Performance Indicators
• Daily–Daily summary, fee exception, deposits, payments• Weekly–appointments, new clients/patients, referrals• Monthly–statistics by staff, discounts/fee variances, revenues, commission, A/R, S/I ratios, compliance, inventory
• Quarterly–revenue, discounts, inventory, compliance• Annually–client retention, patient/client visits, revenue, inventory, client sales
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Questions?Thank you!Please fill out the survey and turn it inNext sessions
Driving Consistent & Profitable Medicine Using Defaults and Smart Group CodesBest Practices in Inventory Management Instructor-Led Lab: Enhanced Medical Notes Setup for
Paper Chart Practices
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Measuring Up:Sources for Industry Benchmarks
• American Animal Hospital Association (AAHA)• Veterinary Fee Reference• Financial and Productivity Pulsepoints• aahanet.org
• American Veterinary Medical Association (AVMA)• Report on Veterinary Practice Business Measures• avma.org
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Measuring Up –Sources for Industry Benchmarks
•Veterinary Hospital Manager Association (VHMA)• Practice Diagnostic Report• vhma.org
•National Commission on Veterinary Economic Issues (NCVEI)• Online benchmarking tools and reports• ncvei.org
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Measuring Up –Sources for Industry Benchmarks
•Veterinary Economics• veterinarybusiness.dvm360.com
• Well-Managed Practice Study • wellmp.com
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