Service line performance analysis requires the application of business intelligence. The compilation and analysis of information from a variety of sources to plan, develop and manage the organization’s service lines will work to ensure maximum profitability. Typical measures of performance include:
- Profit & Loss Metrics – Outpatient revenues, inpatient revenues, reimbursement rates, adjustments, write-offs, costs of labor, materials, overhead, direct contribution margins, and indirect contribution margins.
- Investment Measures – Facility purchases, equipment purchases and cost of various forms of capital. Operational statistics and ratios. Cases, clinic visits, discharges, patient days, average length of stay.
- Operational Statistics and Ratios – Cases, clinic visits, discharges, patient days, average length of stay (ALOS), case mix index (CMI), emergency room (ER) visits, admissions and productivity measures.
Spectrum Health Partners is well-prepared to evaluate these metrics for your organization. Our experts will develop a service line analysis to indicate service areas which should be expanded, contracted or possibly closed. Service lines that do not add profitable value to the organization should be scrutinized closely because of their negative impact on the organization.