Physician practices say they want clarity in revenue performance, but Encoda’s “The state of financial health” survey, published Feb. 24, suggests most leaders are still operating with limited certainty.
Encode surveyed 84 physician practice leaders. primarily from independently or physician-owned organizations. More than half of respondents are employed in single-specialty physician practices, while 44% work at multispecialty practices.
Here are five things to know:
1. Confidence is low. Only 7% of respondents expressed extreme confidence in their ability to accurately identify where revenue is delayed, underpaid or at risk.
2. Most leaders aren’t convinced their reporting can pinpoint risk. Just 47% expressed confidence that their current financial reporting accurately identifies issues and financial risks (while 53% said they are not confident).
3. Financial review is taking an emotional toll. Alongside “confidence,” leaders reported frustration (36%), stress (30%) and uncertainty (22%) when reviewing financials.
4. Strategy is often revisited too infrequently to stay ahead of problems. Practices revisit financial goals quarterly (46%) or annually (21%) more often than monthly (25%); 6% revisit goals only when problems arise.
5. Even when problems are identified, response isn’t fast. Only 19% are able to detect and respond to issues within two days, limiting the ability to prevent denials from aging and cash flow disruption.
