Have you ever wondered why 70 percent of lottery winners declare bankruptcy within three to five years after receiving their payout? It’s simple—they fail to manage their funds.
According to Sandra Hayes, a one-twelfth winner of a $224 million Powerball jackpot in Missouri, “If you’re not disciplined, you will go broke. I don’t care how much money you have.” This same principle applies to everyone and everything, including medical clinics. Simply put, financial management is crucial to your practice’s longevity.
One of the most effective ways to manage funds is to create key performance indicators (KPIs). These indicators evaluate the overall success of an organization by analyzing specific internal processes and communicating the need for change and improvement.
To develop strong KPIs, your team must first know and understand your core business objectives. These objectives should then serve as the basis for establishing SMART KPIs, which are defined by the following:
- Make your objectives as specific as possible.
- Set goals that can be easily measured and benchmarked.
- Determine if your goals are realistic.
- Decide if your goal is relevant to your practice.
- Establish a timeline to achieve this goal.
Once your KPIs are established, make them SMART-ER as you frequently evaluate and reevaluate them. This is an ongoing process that can easily be done using practice management and electronic health record (PM/EHR) software, specifically a healthcare dashboard.
With a dashboard, you can quickly access important financial information, patient statistics, and more. This data can be displayed through graphics and reports, all found in a single application customized by you.
Contact us to see how the PCIS GOLD® Dashboard can help your practice remain financially disciplined and thrive for years to come.