As ophthalmic practices continue their financial recovery from the COVID-19 pandemic, gaining buy-in from and promoting engagement of all team members is critical. For many groups, returning to “normal” has, thankfully, come quicker than expected, while others are still in the earlier stages. Regardless of where you are in this journey, success requires a high level of discipline in all areas of the practice — especially when it comes to regaining and measuring financial health. This is where buy-in from staff can be a real help.

RETHINK SHARING

Leaders are rightly focused on the financial metrics of the practice, and often keep that information within a small, trustworthy circle rather than making information widely known to all staff. While it may be unrealistic to share a full profit and loss (P&L) statement, balance sheet or cash flow statement with all members of the team, we have another approach for practices to consider.

First, a couple of interesting questions:

• Why is it important for all team members to have visibility of the financial health of the organization?
• How can we transparently utilize appropriate financial metrics to promote engagement with every employee?

There is no one-size-fits-all answer to these questions, but based on our experience, practices that are most likely to be successful coming out of the pandemic are those taking a more transparent approach.

Being a great financial steward is more than just tracking the numbers. It is also about educating staff members on how they fit into the process and how everyone can play a vital role in the recovery and success of the business. Creating a common language on financial topics to share with everyone on how the company is doing, educating on the goals moving forward and defining how to measure success are crucial elements of great financial leadership.

UNDERSTAND THE “WHY”

Before you begin sharing metrics, it is important that you understand how communicating this data can contribute to success. To start, people are the most crucial asset in any organization, and gaining their full buy-in and engagement is necessary for success. When team members have a good understanding of the financial health of the practice based on accurate information from the leadership team, it minimizes the creation of individual narratives that can negatively impact productivity and divert focus from patient care.

Transparently sharing helps each person feel more engaged, more connected to the organization, and more supportive of its success. Staff who have no idea if the practice is financially stable may seek other opportunities and leave the organization, which is costly and creates disruptions.

Sharing appropriate financial information also creates a sense of unification. Removing the perceived barrier of leadership vs staff can foster a sense of common purpose, with everyone working toward a common goal of success in the organization. It is much easier to be committed to success when we know what that looks like based on financial data that helps guide our journey.

METRICS YOU CAN SHARE

At our company, BSM Consulting, we regularly share numerous key performance indicators or financial results with all members of the company. We may fall on the side of “uniquely transparent” in our sharing, as our CEO believes in the importance of providing timely and honest information that allows each person to understand the financial health of our company fully. Examples of metrics shared include:

• Revenue and expenses for the period compared to budget (or post-COVID-19 forecast)
• Revenue per full-time equivalent (FTE) support staff
• Accounts receivable/payable.

Through repetition and consistency in sharing these results, all team members, regardless of position, know how we are doing and, ultimately, can feel connected to the goals of the organization. More importantly, though, these types of metrics are powerful because every member of the company knows how he or she can impact the results. This creates buy-in and allows everyone to feel a sense of ownership in the success of our business.

For ophthalmic practices, some of the metrics might be different, but the overall goal of being transparent and creating common language remains similar. Along the same lines, there should be some results that every person in the practice can understand, while other indicators will be more impactful at the departmental level. This does not mean sharing every single detail of the practice’s financial statements; instead, it means creating common goals that are easy for team members to understand in addition to knowing what their role is in the process.

As it relates to measuring how the organization is doing in its COVID-19 recovery process, below are some standard metrics that are helpful when shared at the practice level and departmental level:

• Practice-wide: Weekly or monthly patient visit volume, percentage of pre-COVID-19 levels or patient satisfaction results
• Administration: Revenue per FTE support staff, operating expense ratio or staffing volume compared to before the pandemic
• Billing department: Accounts receivable aging percentages or days sales outstanding (measuring the average number of days to be paid on a service)
• Front office or clinical departments: Average patient visits per day, no-show percentage.

While these are just some common examples of metrics being used in practices to measure financial health and recovery, the message is that an agreed-upon approach to sharing information relevant to all is essential for your organization’s success.

MOVING FORWARD

It is safe to say we all are taking a new look at how we run our businesses. COVID has challenged us to think and act differently.

Looking at financial leadership through a different lens, as more than just the numbers, can help bring new opportunities to share information, promote engagement and create a unified organization that will be set up for success now and into the future. OM

Andrew Maller, MBA, COE, is a senior consultant at BSM Consulting. His areas of expertise include financial benchmarking, private equity transaction support, practice acquisition or merger, provider contracting and compensation. Contact him at amaller@bsmconsulting.com.

Laura Baldwin, CPC, ELI-MP, RN, is a BSM senior consultant with more than 25 years of experience in health care. Her areas of expertise include strategic planning, identification and implementation of operational improvements, executive and leadership coaching. Contact her at lbaldwin@bsmconsulting.com.