Average Charges Per Day
Description:
This ratio is used for monitoring daily fluctuations in a practice's ability to generate charges. This, in turn, drives revenue.
Why Is This KPI Important?
Average Charges per Day is one of those "quick and dirty" ways to keep an eye on how things are going in your practice in terms of revenue. It is a rudimentary calculation that gauges many things in one number. For example, if there is a drop in the amount of charges per day, is that because the provider stopped seeing patients early? Could it be that his well-child visits canceled? Could it be that he/she did not give as many vaccines that day?
This KPI can be run for 5, 30, 60, 90 or even 120 day periods. Just be sure that whatever number of days you use, you add up the charges for the same number of days before running the calculation.
PMI Recommended Frequency to Run this KPI:
Weekly and/or monthly
Formula:
Gross Charges For Past 90 Days / 90
Show the Math:
$245,000 / 90 = $2,722
How Should I Track IT?
This KPI can be tracked using an Excel spreadsheet by Provider on a monthly or annual basis.