What it’s all about
In an increasingly complex and fast-moving healthcare landscape, physicians in private practice are confronted with a multitude of challenges. In addition to medical care, business aspects and, above all, the analysis and control of practice management with the help of key performance indicators (KPI) are playing an increasingly important role. But what are the advantages for practice owners who work with these key performance indicators?
KPI: The laboratory values of practice management
Laboratory values are an essential basis for medical patient care. With their reference ranges and decision limits, they serve diagnostics and the classification of diseases into degrees of severity. In addition, they are used for course and therapy controls, but also for prevention and for determining or assessing risk factors.
Similarly, the exact assessment of practice management is also hardly conceivable without its business management counterpart, the key performance indicators (KPI). The KPIs are parameters that are created in the context of a practice analysis by comparing the practice management data of a practice with an objective and representative measure, the best practice standard. It describes all regulations, instruments and behaviours that are essential for smoothly functioning work even under changing demands. GPs and specialists who work with these parameters benefit from a variety of advantages, as they significantly change the control of practice management:
📌 Targeted strategy development through KPIs.
A key benefit of using KPIs is the ability to develop a targeted and informed strategy for the practice. Doctors who use KPIs can make informed decisions based on objective data and transparent structures as well as impact relationships, whereas those without KPIs have to rely on intuition or estimates. This leads to a more efficient allocation of resources and a higher probability of practice success.
📌 Faster identification of problem areas.
KPIs enable rapid identification of weaknesses in all action areas of practice management, from planning, patient care, organisation, leadership and time management to marketing and controlling. This enables timely intervention and prevents long-term negative developments. In contrast, doctors without KPIs lack the ability to identify systematic problems at an early stage, resulting in inefficient processes and missed opportunities.
📌 Focused staff management
KPIs provide clear points of reference not only for the practice owner but also for the entire team. Through set performance indicators, staff can receive targeted training and development. Doctors without this guidance often struggle with non-specific targets and less effective team dynamics.
📌 Improved patient satisfaction.
Indicators that focus on patient care go a long way in improving patient satisfaction. By monitoring KPIs on waiting times, service or information, the practice can be continuously optimised. Doctors without such metrics run the risk of losing patient focus and thus jeopardising valuable relationships.
📌 Emotional factor: self-affirmation and motivation.
KPIs also provide a strong emotional drive for practice owners. Achieving or exceeding KPI targets leads to self-affirmation, which in turn increases motivation for further optimisation efforts.
Conclusion: KPIs as a decisive competitive advantage
The use of key performance indicators offers physicians in private practice a number of advantages, ranging from improved strategy development to increased patient satisfaction. In an increasingly complex healthcare landscape, KPIs can provide the decisive competitive edge. Physicians who forgo such performance indicators expose themselves to the risk of inefficient operations, wasted resources and lost opportunities. Therefore, the implementation of KPIs should be considered an integral part of modern practice management.
Further information
Would you like to know exactly how the KPI approach works and how it can be implemented in your practice? Then you should take a look at the publication “Benchmarking practice management for GPs and specialists – method, application and benefits”. It describes in detail how you as a GP or specialist can benefit from this approach.
🛜 To download the PDF book (German)…
This publication will provide you with valuable insights into practice management and enable you to reap the benefits of the convenience approach. Don’t miss the chance to expand your knowledge and optimise your practice.
R2049 