Question

the key measurements used by organizations to track financial performance in a health care organization or department?

Answer 1

Following are the key Measurement used to track Financail performance of Health Organisation or department:

1. Average treatment charge/ Average cost of discharge : is amount of money the health charges from each patients for their treatment. It is a good measure of business objectives relating to hospital costs.
2. Permanent Employee wages :human resources represents large portion of costs for most of the organisation and keeping track is vital .
3. Average Insurance processing time and cost : this is calculated by finding the mean of total time and total cash spent by health organisation on insurance claims. The lower amount denotes that hospital gets faster payment and there are low charges on treatment fees
4. Claims Denial rate : this is used to check efficiency of revenue cycle of the health orgnisation. lower rate indicate a good sign.
5. Operating margin : is total revenue less total cost
6. Bad bebts : it is a revenue loss occur when a health organisation requests payment from a patient for care provision and does not receive full amount .