Three-step annual review process to keep your practice on mission

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Medical group owners know that conducting an annual review of their practice is not only imperative to running a successful business, but key to identifying both operational gaps and clinical care issues. It’s also one of the most impactful actions you can take to remain focused on your practice’s core purpose—the reason you became a private practice owner in the first place.

Because a comprehensive annual review involves looking at your most critical KPIs and evaluating them against previous performance, many practice owners fail to dig into the data that can significantly impact their business. Instead, they simply do what they’ve always done to ensure everything is on the up and up.

But, when done correctly, an annual review can uncover hidden opportunities that greatly improve your patient satisfaction, clinical outcomes, and revenue cycle management strategies. The good news is that it doesn’t have to be a complex, drawn out process. In fact, it only takes three steps to conduct an effective annual review to help you stay focused on fulfilling your practice’s core purpose.

Step #1: Measure your practice’s performance against previous KPIs and other metrics

The first step to conducting an annual review starts with the data. A strong focus on a small number of business-critical KPIs that directly impact your practice’s core purpose is optimal for managing and directing a thriving practice. Annual earnings is an obvious KPI, but it also helps to evaluate metrics like patient satisfaction and appointment trends, clinical outcomes, and, if you have multiple providers on staff, physician billing trends.

The goal is to assess current practice performance against the previous year’s results. Have they improved? Is there work to be done in some areas? Underperformance in any area is an opportunity to figure out where the roadblocks are so that you can course-correct whatever may be throttling your practice’s success.

After gaining a solid grasp of your practice’s KPIs, it is also beneficial to compare your results to industry standard benchmarks. It’s important to know how your practice is doing compared to the others in your field so that you are not operating your business in a vacuum. Comparing your performance to other practices also offers insights on the KPIs you track and whether or not they are the right metrics to measure your practice’s success.

Step #2: Analyze trends that show how the data is shifting over time

Once you have a snapshot of your practice’s annual performance, the next step is to analyze operational, financial, and clinical trends so that you can determine how the data is shifting over time. Your metrics should show you which way the data is moving and how fast. Does it vary month-to-month? Do you see spikes or downfalls during certain times of the year? Are there irregularities that may be signaling problem areas? Are there anomalies in your data that require more attention?

The trends in your data are crucial indicators of your practice’s momentum as a business. It’s the closest thing you have to a crystal ball, helping you better understand what is likely to happen six months, or even a year, from now.

Taking the time to analyze how your most important KPIs may be shifting from year to year offers insights on upcoming opportunities, while also shedding light on potential challenges ahead.

Step #3: Determine if your practice is fulfilling its core purpose … and what actions may be needed to get back on track

Once you have identified which KPIs best reflect your practice’s core purpose and evaluated your practice’s performance for the year, then analyzed your practice’s business-critical trends, it’s time to take a step back and look at the big picture. Does the data support what you want to achieve as a health care provider? In other words, are you truly fulfilling your practice’s core purpose?

As a medical group owner, it is easy to get overwhelmed by daily operations. Caring for patients, supporting your staff, managing the business—it’s a lot to handle. A successful annual review will make clear if the time and resources you are investing in your practice are paying off. It also will give you the insights you need to address the bigger questions: Are you fulfilled professionally? Are you happy with your work-life balance? Is your practice meeting its foundational goals?

A successful annual review will provide answers to these questions, while also offering insights on what actions need to be taken to align your outcomes with your practice’s core purpose. Once you have a clear view of the data, it is much easier to make necessary adjustments that have a major impact on your practice’s success.

As Group Product Manager for AdvancedMD, Christine Duncan leads product development for the AdvancedMD practice management, reporting and in-application suite of products.