No surprises here, 2020 was a crazy year. We recently came across a post by Simon Holland that summed it up pretty well, “Don’t know about you all but I could really go for some precedented times.” You can say that again! Unfortunately we remain in unprecedented times, but we’re not going to let that stop us (or you!) from capturing as much revenue as we can from the year that made us earn every dollar!
We want to give you some things to think about as you close the books on December, and 2020 as a whole. It’s a great time to stop and think about your physicians, your processes and your finances. We'll highlight some topics you can use to judge your performance in 2020, and hopefully get you thinking strategically about 2021.
Practicing physicians are an important part of every successful surgery center. It will be worthwhile to meet with your physicians and see how their year went. Did their volume change? What volume do they expect in 2021? Do they anticipate any additional OR usage? It may also be helpful to inform them of any new cases (relevant to them) that are approved in the ASC setting. This is also a good time to check and see if there are any new physicians practicing in the area that may be interested in performing cases at your facility.
With respect to your processes, we highly recommend taking the time to meet with your staff and stakeholders and ask some questions. What did we do well in 2020? What processes need improvement? What did our patients say about their experience at our facility? What are our physicians saying about our facility?
And finally, our favorite topic of conversation, what do your finances say about your facility? Here are some data components you can look at to begin to answer these questions. First, look at your case count. It’s expected that your case count for the year is lower than usual, as many surgery centers were closed or seeing reduced cases for a good part of the year. However, it will be helpful to know what percentage your case count has decreased by to compare to what percentage your revenue may have decreased by. You don’t want to let COVID mask (get it?!) any weaknesses in your revenue cycle. It’s a good time to also look at your revenue by payer. Do any contracts need renegotiating? Finally, how has your outstanding accounts receivable changed over the past year? How has your days in accounts receivable calculation changed over the past year?
Answering these questions will help you evaluate your performance in 2020 and set goals for 2021. As always, we’d love to help answer any questions you have along the way. Drop us a comment or give us a call at 855-208-5566. Happy New Year!