Bugs in the Spreadsheet?

Once you have seen your patients and managed your money, you’re then faced with the monthly meeting. For most practices, this includes a review of the financials. Unless you have an accounting degree, the spreadsheets often provide little truly actionable information. We must change this!

Sadly, most of us spend a great deal of time reviewing productivity reports. When the meeting starts, most physicians turn to the productivity reports, make sure the metrics they understand seem acceptable, and then tune out. Productivity reports are important but only when taken in context and analyzed in a meaningful way.

For years we followed this same pattern. We produced monthly productivity reports and numerous graphs. There was extensive supporting documentation including the number of procedures performed, visit types, and even relative value unit (RVU) analysis. Lots of numbers, pretty graphs, and comparisons to prior reporting cycles are combined for a binder of information—unfortunately, these amount to little more than eye candy.

Although we felt like we were analyzing our practice, we wasted untold hours reviewing and considering the meaning of the numbers. Unfortunately, we weren’t analyzing the practice from a business perspective. In fact, the data told me little more than the profit and loss analysis when we need far more. As the practice of medicine is pushed into ever-decreasing margins, the importance of effective analysis has grown to paramount importance.