LHD Financial Metrics & Performance Indicators AAron Davis Center for Public Health Initiatives Community Engagement Institute 2017 LHD Financial Metrics & Performance Indicators

Public Health Initiatives… …develops people and organizations to improve the Public Health system in Kansas by: Training Support Coaching Empowering Individuals Strategic Planning Agency Performance Improvement Capacity Building Developing Organizations Facilitating statewide collaborative initiatives Peer learning opportunities Creating opportunities for change Strengthening Systems CCSR supports Kansas Public Health: Assist local public health programs in strategic planning Facilitate Community Health Assessments Leadership Development and Training Local Public Health system assessment facilitation Research evidence based practices

KDHE Support Funding for this project initiative is from the Title XIX Medicaid Contract for Technical Assistance, Training, and Evaluation Services. Training is provided as part of an effort to provide training and capacity building to ensure and improve local access and delivery of Kansas Medicaid services.

My aim for the day: 1. How can we make this project more useful for you? 2. What else do we need to consider?

Why Financial Management? Metrics for Administrators Agenda Why Financial Management? 1 Why Metrics matter? 2 Metrics for Administrators 3 Metrics for Billers 4

Why Financial Management? 7

Financial Management “The Purpose of becoming comfortable with financial reports is that it allows a manager to examine results to get an understanding about what is going right and what is going wrong with the organization from a financial perspective.” -Financial Management for Public Health, and not-for-profit Organizations, 2013

Past & Current Financial Mgmt Efforts NACCHO: PHUND$ NACCHO: Financial Ratio Training NACCHO: Applied Financial Management NACCHO: Budget Impact Analysis Common Chart of Accounts Initiative 2014 KAC Study on Revenue Vaccine Cost Calculators (ND) Courses on KS-Train

Workforce Development Survey “One major difference found was that Financial Planning and Management Skills was the domain with the lowest need in 2003 and 2005. The 2014 assessment identified a high percentage of public health professionals do not perceive competencies in this domain apply to their job, which indicates a high need. “ - Kansas Public Health Workforce Assessment Report 2014-2015 Coffey, Pawnee & Franklin Counties presented

Of positive possibilities Change Formula D x V x F > R Dissatisfaction With the status quo First Steps In the direction of the vision Resistance To change Vision Of positive possibilities

Why Metrics Matter 12

Financial Metrics: Why you should care Metrics serve as yardsticks in judging the quality, value and success of an organization.

Financial Metrics Help You… Spot trends Create goals through benchmarks Provide early warnings of issues

Financial Metrics: Why you should care Metrics give you the ability to: Develop a better vision Communicate details with staff, clients, and management Make better decisions Define and document success You can’t manage it if you can’t measure it. Have you ever wanted to prove to staff that you know what you’re doing? Have you ever thought your county manager, commissioner, clerk or treasurer looked down on you for not knowing something? You can’t manage it if you can’t measure it.

Metrics for LHDs 16

Metrics: Keys for success Select specific metrics that are important to you Choose a frequency that is right for you Periodically reevaluate your metrics and formulas As you move towards using metrics to manage and improve your clinic, follow these suggestions: It's important not to have too many metrics. Concentrate on only a handful of metrics that are necessary. Choose the right frequency of measurement. If you only measure a metric once a year, you may not get the information in time to take the necessary corrective actions. Periodically reevaluate your metrics. Your business priorities change over time, and your metrics will need to be modified accordingly. Read more: http://www.surepayroll.com/articles/business/manage-and-measure.asp#ixzz3ij5XldnT

As an Administrator…watch these Operating Profit Margin Collections per Encounter Write-off Percentage (quarterly/annually) Revenue & Expense per Capita

As a Biller/Office Manage…watch these Net Collection Ratio Denial Rate (by cash and by claims) % of AR greater than 120 days

Harsh Realities You will never have a tool to compare departments This will never be easy (no one wants to be an accountant) No tools exist that get all the information you want or need We can only take one step at a time

Review of Tool Draft 21

My aim for the day: 1. How can we make this project more useful for you? 2. What else do we need to consider? 3. We need two more pilot sites…

Thank you for your participation AAron Davis aaron.davis@wichita.edu 316-978-5884