Healthcare financial metric that shows unique aspects about a financial data. Each financial metric just like in descriptive statistics shows unique aspects about cash flow or financial figures. From the financial metric, the characteristic of the whole body of data may be simpler while reviewing financial figures for individual healthcare setups. The healthcare industry is key because of its effects on everyone making the use of matrices in measuring performance critical. The general focus of healthcare system includes among other things diversity of services and the quality checks of the different services offered.
Matrices used in Healthcare systems include; the accounts receivable number of days, a monthly review of collections during the month, the net revenue estimated for the month (Finkler & Ward, 2006). Other aspects of measurement that can be used in gauging health care systems from the balance sheet side. Balance sheet determines the financial position of the healthcare at the end of each financial period. They include the number of day’s cash on hand and the number of days in accounts payable (Gapenski, 2009). From the expense side, the measures that can be used in determining the performance of healthcare systems include the ratio of wages and salaries to the net income of the Healthcare Centre or set up, the sum of clinical hours per case, the supply costs per case and finally maintenance and repair expenses.
Examples of data derived from matrices data.
Several examples exist where matrices have been used in the management of healthcare systems. In the financial setup, for instance, the level facility metrics that includes the analysis of the financial soundness of the healthcare facility (Finkler & Ward, 2006). Secondly, under the utilization a condition/procedure level matrices aims to measure the physical level of metrics. The evaluation of cost and productivity, for example, the determination of the supply cost per patient per day and full-time equivalents per patient per day. Another point is the average payment period which shows the efficiency in credit collections. Cashion ratio is also important metric example used in measuring the capital structure of the healthcare unit. It helps in risk position evaluation in healthcare unit.
References
Finkler, S. & Ward, D. (2006). Accounting fundamentals for health care management. Sudbury, Mass.: Jones and Bartlett.
Gapenski, L. (2009). Fundamentals of healthcare finance. Chicago: Health Administration Press.
