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39 – Monthly/Quarterly Tasks: Perform financial review
10 Plays17 days ago
The sixth task that you should complete monthly or quarterly is performing a financial review.
View the full report online: https://www.hstpathways.com/resources/surgery-center-industry-report/
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Transcript
Importance of Financial Reviews
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The sixth task that you should complete monthly or quarterly is performing a financial review. Financial management, planning, and budgeting are essential functions for the successful operation of a surgery center. They involve forecasting revenue and expenses, creating a budget, monitoring financial performance, and making necessary adjustments to ensure the financial stability and sustainability of the center.
Utilizing Software for Financial Planning
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Reviewing these functions monthly allows the Center to promptly identify and address any financial issues and make informed decisions supporting its overall objectives. Using specialized practice management software, such as HST, to streamline the planning, budgeting, and monitoring process will ensure the accuracy and completeness of the financial picture and remove as much manual input and analysis as possible, Involving key stakeholders from the beginning, such as your board of directors, management groups, and administrative staff, will also make sure everyone has alignment and buy-in for the plan slash budget.
Preparing for Financial Reviews
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The last thing anyone wants during a board meeting or monthly financial review is for surprises to pop up. Next, let's walk through the key process steps for this phase. Step 1. Prepare the financial data for the review. This includes gathering data on actual revenue and expenses for the month and comparing it to the budgeted amounts.
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Step 2. Analyze the previous month's financial performance and cash flow projections for the upcoming month, quarter, and year. This includes identifying any trends or issues that need to be addressed.
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Step 3. Based on the analysis, make any necessary adjustments to the financial plan and budget. This may involve revising revenue or expense forecasts, reallocating resources, or identifying cost-saving opportunities.
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Step 4. Review the financial performance, plan, and budget with key stakeholders. Step 5. Document the review, including the analysis conducted, any adjustments made to the plan and budget, and any decisions made during the review with key stakeholders.
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Step 6. Implement any adjustments made to the financial plan and budget.
Key Performance Indicators
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This may involve communicating changes to relevant staff, updating financial management software, or taking other actions as necessary. The following key performance indicators will help you track your success.
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Earnings before interest, Taxes, Depreciation, and Amortization, EBITDA, Revenue Growth Rate, Budget Variance, Cash Flow, and Budget Preparation Timeline.
Trends in Case Volume
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Lastly, let's look at some benchmarking data. Looking at case volume in 2025, gastroenterology leads by a wide margin at about 170 cases per month, followed by ophthalmology at 127. Next are orthopedics, dental, and pain, which fall in the 60 to 75 case range. Most other specialties operate at significantly lower volumes, with several, including cardiovascular, plastic, and general, averaging fewer than 10 cases per month.
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Over time, case volume has generally increased or remained steady across most specialties. Specialties like dental and total joint show some of the most notable growth, while others, like spine and pain, remain relatively stable. Overall, the trend points to continued growth in outpatient surgical volume.