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

2. 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

3. 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.

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

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

7. Why Financial Management?7

8. 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

9. 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

10. Workforce Development Survey
“One major difference found was that Financial Planning and Management Skills was the domain with the lowest need in and The 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
Coffey, Pawnee & Franklin Counties presented

11. 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

12. Why Metrics Matter 12

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

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

15. 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.

16. Metrics for LHDs 16

17. 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: 

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

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

20. 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

21. Review of Tool Draft 21

22. 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…

23. Thank you for your participation
AAron Davis