A new set of eight MAP keys was recently released by the HFMA, and when used correctly, is designed to aid hospitals, health systems and physician practices in tracking financial performance over time.
The HFMA’s MAP, or information to measure performance, apply evidence-based strategies for improvement and perform to the highest standards, was created by healthcare leaders and, “sets the standard for revenue cycle excellence - for your organization and for our industry,” says the HFMA MAP site.
The new set of keys was created, defined and prioritized by a group of industry leaders. Key definitions were then validated by 158 hospital, group practice and multihospital system executives through a survey. Hospitals, systems and practices can use these indicators to both track performance and compare their findings with peers.
In addition, HFMA will be providing comparison data about physician practice performance and examples of improvement strategies through its MAP App.
Here are the eight new MAP keys for physician practice management:
1. Practice operating margin. This key measures financial performance of a physician entity on an accrual basis.
2. Practice net days in accounts receivable. This key calculates the average number of days it takes to collect payment on services rendered and measures revenue cycle effectiveness and efficiency.
3. Practice cash collection percentage. The purpose of this key is to measure revenue cycle efficiency and support valuation of current accounts receivable.
4. Total physician compensation as a percentage of net revenue. This key demonstrates ability to afford physician compensation in relation to revenue of the physician enterprise.
5. Professional services denial percentage. This key tracks payer denials and impact on cash flow. It also trends payment and process improvement opportunity.
6. Point-of-service collection rate. This key provides opportunity to decrease collection costs, accelerate cash flow and increase collections.
7. Total charge lag days. This key measures charge capture workflow efficiency and identifies delays in cash.
8. Percentage of patient schedule occupied. This key identifies opportunity to maximize slot utilization and improve practice productivity.
Follow Michelle McNickle on Twitter, @Michelle_writes