Productivity and Profitability: Metrics and Improving Performance

At the 18th Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 28, John Seitz, CEO of the Ambulatory Surgical Group, discussed the benefits of metrics and suggested useful metrics to track.

Mr. Seitz said metrics can help ASC administrators make decisions based on facts instead of emotion, quantify the achievement of goals and communicate clearly with physicians and staff. He said metrics should be clear in meaning and presentation and simple to understand; graphs and charts should clearly indicate trends, opportunities for improvement or areas of success. In addition, metrics should also measure something in the ASC's control, linked to the center's top-level goals and focused on what makes the center a success.

Metrics can be organized by category. For example, Mr. Seitz said useful metrics on physicians may include cost per case and collections while metrics on supplies may include percent of revenue and those for financials profit margin and accounts receivable. Once ASCs have measured these metrics, they should then benchmark themselves against local, state or national data. Mr. Seitz suggested comparing data to other ASCs in the area. "I encourage you to reach out to other centers around you and find out how they're doing," he said.

Furthermore, ASCs need to have an action plan of what to do once the data is benchmarked. Mr. Seitz said ASCs should understand any modifiers, such as vacations, holidays or staffing issues that may have influenced data; communicate effectively with the physicians about the findings; and create an "AR Step-Up Plan," which may include reviewing balances and checking denials.

Related Articles on the 18th Annual Ambulatory Surgery Centers Conference:

Driving ASC Performance Through Effective Financial Management
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NBA Hall of Famer Bill Walton Shares Thoughts on Perseverance With Attendees at the 18th Annual ASC Conference


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