Fragmentation, manual work and workflow burden are burdening physician practices’ ability to manage their finances, according to Encoda’s “The state of financial health” survey, published Feb. 24.
Encode surveyed 84 physician practice leaders. primarily from independently or physician-owned organizations. More than half of respondents are employed in single-specialty physician practices, while 44% work at multispecialty practices.
“Our research highlights the critical need for practices to move beyond reactive financial management,” Lisa Taylor, CEO of Encoda, said in a news release. “The findings reveal that many organizations are struggling to achieve the clarity, control, and confidence necessary to navigate today’s financial challenges. By addressing these gaps, practices can unlock their full potential and build a foundation for long-term success.”
Here are six key figures to know:
1. Financial tracking runs through multiple systems and reporting remains largely manual, according to the survey. Practices rely on:
- EHR: 73%
- Practice management system: 67%
- Outsourced reports: 37%
- Clearinghouse portals: 35%
2. Practices want centralized visibility. The survey found 70% of leaders see immense value in a centralized, automated dashboard.
3. Fragmentation is the top barrier. Here are the top barriers to accessing financial metrics:
- Data is spread across multiple systems: 45%
- Lack of real-time visibility into metrics: 38%
- Technology limitations like outdated systems and reporting tools: 37%
- Limited staff or resources: 37%
- Lack of insight from limited data or unclear metrics: 26%
4. Reporting burden increases with size. Here’s monthly reporting time by practice size:
- Small practices (less than 20 providers): 5 hours or less a month
- Medium practices (20-100 providers): 6-10 hours
- Large practices (more than 100 providers: 11 or more hours
5. Here are the top priorities for practices:
- Reducing denials and accelerating collections: 70%
- Streamlining workflows and improving operations: 60%
- Optimizing staff productivity: 55%
6. Here’s how leaders would use a centralized financial health dashboard:
- Monitor KPIs daily: 56%
- Forecast performance or monitor operational inefficiencies: 43%
- Receive automated alerts for issues and risks: 39%
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