New Keys
MAP Keys for Physician Practice Management
HFMA is committed to helping hospitals, health systems, and physician practices achieve the best financial performance. HFMA has developed standard indicators of financial performance for physician practices called MAP Keys for Physician Practice Management. Organizations can use these indicators to track performance over time and to compare performance with peers.
The MAP Keys for Physician Practice Management are:
Percent of Patient Schedule Occupied» Point-of-Service (POS) Collection Rate» Total Charge Lag Days» Professional Services Denial Percentage» Aged A/R by Payer Group as a Percentage of Outstanding Total A/R» Aged A/R as Percentage of Outstanding A/R» Primary Physician Practice Operating Margin Ratio» Specialty Physician Practice Operating Margin Ratio» Net Income/Loss Per Primary FTE Physician» Net Income/Loss Per Specialty FTE Physician» Total Primary Physician Compensation as a Percentage of Net Revenue» Total Specialty Physician Compensation as a Percentage of Net Revenue» Practice Net Days in A/R» Practice Cash Collection Percentage»Measure:
Percent of Patient Schedule Occupied
Purpose:
Identifies opportunity to maximize slot utilization and improve practice productivity.
Value:
Measures available capacity in a patient schedule.
Calculation:
N: Number of patient hours occupied
D: Number of patient hours available
Measure:
Point-of-Service (POS) Collection Rate
Purpose:
Provides opportunity to increase collections, decrease collection costs, and accelerate cash flow.
Value:
Identifies opportunity for increased POS collections.
Calculation:
N: Total POS collections
D: Total patient cash collected-all self pay
Measure:
Total Charge Lag Days
Purpose:
Measures charge capture workflow efficiency and identifies delays in cash.
Value:
Accelerates cash flow.
Calculation:
N: Σ days from revenue recognition date (posting date) less date of service date (by CPT code)
D: Σ CPT codes billed
Measure:
Professional Services Denial Percentage
Purpose:
Tracks payer denials and impact on cash flow and trends payment opportunity and process improvement.
Value:
Drives root cause accountability in the revenue cycle processes.
Calculation:
N: Σ CPT (units of service) codes denied
D: Σ CPT codes billed
Measure:
Aged A/R by Payer Group as a Percentage of Outstanding Total A/R
Purpose:
Trending indicator of receivable aging and collectibility by payer group.
Value:
Indicates payment delays or revenue cycle’s ability to liquidate A/R by payer group.
Calculation:
N: Billed payer group by aging (0-30, >30, >60, >90, >120 days)
D: Outstanding A/R by payer group
Measure:
Aged A/R as a Percentage of Outstanding A/R
Purpose:
Trending indicator of receivable aging and collectibility.
Value:
Indicates payment delays or revenue cycle’s ability to liquidate A/R.
Calculation:
N: 0-30, >30, >60, >90, >120 days
D: Total outstanding A/R
Measure:
Primary Physician Practice Operating Margin Ratio
Purpose:
Measures the financial performance of a primary physician entity on an accrual basis.
Value:
Determines the state of financial health and sustainability of current practice operations.
Calculation:
N: Net income from primary practice operations
D: Primary practice operating revenue
Measure:
Specialty Physician Practice Operating Margin Ratio
Purpose:
Measures the financial performance of a specialty physician entity on an accrual basis.
Value:
Determines the state of financial health and sustainability of current practice operations.
Calculation:
N: Net income from specialty operations
D: Specialty operating revenue
Measure:
Net Income/Loss Per Primary FTE Physician
Purpose:
Measures the average profit or loss of Primary FTE physician on an accrual basis.
Value:
Determines the financial health on a physician FTE level; can be used for tracking and trending the profitability of the entity based on a physician level; supports the need for strategy development to minimize losses.
Calculation:
N: Net income from operations
D: Number of FTE physicians
Measure:
Net Income/Loss Per Specialty FTE Physician
Purpose:
Measures the average profit or loss of specialty FTE physician on an accrual basis.
Value:
Determines the financial health on a physician FTE level; can be used for tracking and trending the profitability of the entity based on a physician level; supports the need for strategy development to minimize losses.
Calculation:
N: Net income from operations
D: Number of FTE physicians
Measure:
Total Primary Physician Compensation as a Percentage of Net Revenue
Purpose:
Demonstrates an ability to afford primary physician compensation in relation to the revenue of the physician enterprise.
Value:
Predicts reasonableness of primary physician compensation relative to revenue (direct contribution of a physician).
Calculation:
N: Total primary physician compensation
D: Total net primary patient service revenue
Measure:
Total Specialty Physician Compensation as a Percentage of Net Revenue
Purpose:
Demonstrates an ability to afford specialty physician compensation in relation to the revenue of the physician enterprise.
Value:
Predicts reasonableness of specialty physician compensation relative to revenue (direct contribution of a physician).
Calculation:
N: Total specialty physician compensation
D: Net specialty patient service revenue
Measure:
Practice Net Days in A/R
Purpose:
Calculates the average number of days it takes to collect payment on services rendered; measures revenue cycle effectiveness and efficiency.
Value:
Used as a potential proxy for DCOH (“Cash Inventory”); determines the effectiveness of patient care collections and can be used for budgeting and cash flow projections.
Calculation:
N: Net patient service A/R
D: Average daily net patient service revenue
Measure:
Practice Cash Collection Percentage
Purpose:
Measures revenue cycle efficiency, supports the valuation of current accounts receivable, and predicts income.
Value:
Provides an opportunity to increase cash flow and forecasts accuracy of expected revenues.
Calculation:
N: Actual patient service cash collections
D: Net patient service revenue
