Financial Management Explorer
Product Overview
Financial Management Explorer is aimed at senior and service line leadership as well as clinical and financial analysts. It provides single source of truth for clinical program financial performance and nicely ties together clinical, operational, and financial measures. Rich data exploration can occur through embedded drill through and slicing & dicing.
Features
- Application is automatically refreshed as new data is available.
- High-level clinical, operational, and financial performance measures are combined in a predictable and consistent manner.
- Guided navigation and drill down provides answers to the next series of questions typically asked by the user.
- Embedded logic provides for quick and easy identification of clinical process variation and quantifies the potential opportunity for cost reduction. The application then provides guided navigation into the causes of variation, including provider, cost center, activity code.
Benefits
Benefits include:
- Reducing the time to compile monthly or quarterly performance reports definitely frees up analyst time to focus on finding opportunities to standardize care and reduce cost, but more importantly, creating guided navigation reduces the time to focus in on the areas of highest opportunity.
- Single source of truth for key clinical, operational, and financial measures
- Guided navigation to quickly identify potential opportunities for reduced variation and cost reduction
- Deep drill down into causes of variation.
Measures
Available Measures Include:
- Charges
- Contribution & Total Margin
- Reimbursement
- Variability & Total Cost
- Length of Stay
- Case Mix Index
Data Sources
- General Financial IT systems such as General Ledger, Accounts Payable, etc.
Background
Most healthcare organizations operate on thin margins and need to have a trusted place to go for updated numbers and trends. Not only are the static and trended dollars and statistics important, but so too is the need to identify process variation and cost reduction opportunities. Financial Management Explorer provides a strong foundation to inform business and clinical decisions by linking operational, financial and clinical data across the healthcare enterprise. The application provides robust views of high level financial performance as well as the capability to drill into clinical cost reduction opportunity and drivers of variation.
What types of problems does Financial Management Explorer address?
In many organizations, the Finance department is tasked with collecting and combining data from numerous sources to present a unified picture of current performance. This labor intensive monthly (or possibly quarterly) effort typically results in a static report that not only lacks visualization, but also focuses only on “what” is happening rather than “why”. Each additional question requires a new “one-off” data request that will undoubtedly need to be triaged and queued up for the next available analyst. The tool enables deep drilling from Clinical program down to the Diagnosis and from the Department group all the way down to the chargeable activity code. This allows the organization to focus in on strategic opportunities to reduce variability and improve bottom line performance
Users
This application is aimed at senior and service-line leadership as well as clinical and financial analysts.
Anticipated Improvements
- Reducing the time to compile monthly or quarterly performance reports definitely frees up analyst time to focus on finding opportunities to standardize care and reduce cost, but more importantly, creating guided navigation reduces the time to focus in on the areas of highest opportunity.
- Single source of truth for key clinical, operational, and financial measures
Success Measures
Opportunity Identification:
- Uncover cost reduction opportunities related to standardizing care across a patient cohort.
Process Improvement:
- Reduce the effort it takes the Finance team to generate standard reporting as well as the effort to generate ad-hoc analysis. Finance team saves one day per month. Broadens the reach of reporting that has traditionally been limited
Outcomes Improvement:
- Reduce 2% in cost per case by December 2015 due to standardized practice(e.g. 5% reduction in length of stay, 12% reduction in lab costs)
