1. Net collection rate
Compare payments received with the amount your practice expected to collect after contractual adjustments. Review changes by payer, provider and location where the source data supports it.
2. Days in accounts receivable
Days in A/R estimates how long revenue remains outstanding. A rising trend may point to billing delays, denials, posting issues or changes in payer behavior.
3. Accounts receivable over 90 days
The aging mix adds context that an average can hide. Track the share of receivables older than 90 days and investigate material movements.
4. Revenue and collections by provider
Consistent provider reporting helps leaders understand production, collections and timing differences. Use the same definitions each month so comparisons remain meaningful.
5. Operating margin
Review revenue after operating expenses and separate recurring costs from unusual items. Margin trends help show whether growth is translating into sustainable performance.
6. Staff and provider compensation as a percentage of revenue
Payroll is often one of a medical group’s largest costs. Monitor it alongside staffing levels, scheduling capacity and provider productivity rather than in isolation.
7. Cash on hand and short-term cash forecast
A monthly cash view helps leadership plan payroll, taxes, equipment purchases and expansion. Combine the current bank position with expected inflows and committed outflows.
These measures work best when the underlying accounting records, billing reports and bank activity are reconciled. QonsultFirm tailors reporting to the practice’s systems, service scope and available source data.
Keep a definition with the number
For each measure, keep its calculation, source, reporting period, owner and known exclusions. When a definition changes, record the change before comparing results.
Example definition record: operating margin
| Record field | What to document |
|---|---|
| Formula | Operating profit ÷ revenue × 100. Define which income and expenses are classified as operating. |
| Basis and scope | Accounting basis, included entities or locations, and treatment of owner/provider compensation and one-time items. |
| Source | The financial statements and supporting account mappings used for both numerator and denominator. |
| Period | The same reporting period for profit and revenue, with consistent scope when comparing periods. |
| Interpretation | A measure of operating profitability on the stated basis, not a measure of cash available or a complete diagnosis of the practice. |
| Owner and changes | The person responsible for maintaining the definition, its effective date and any method changes. |