Municipal For municipal entities it’s about workflow. What benefit to workflow does your residency program provide? In addition, California’s Section 17000 obligations to provide access are often fulfilled by residency programs and the family practice center (FPC).
Financial Performance No one should care more than the program director and faculty about the accuracy of program finances. Ignorance is not an excuse. Of the 10 respondents to an online survey sent to California family medicine residency program directors, four stated they had no knowledge of the program’s Medicare GME reimbursement or the program’s annual profit and loss (P/L). There are many reasons not to know this information – some hospitals simply don’t want to share it. But effective positioning and advocacy requires access to and knowledge of this critical information. Without it, you are completely blind to potential risks and the steps needed for an effective response, and you cannot illustrate the value you bring to the community. It is imperative that the program director and faculty are 1) aware of their budget; 2) aware of their financial performance within that budget; and, 3) active in discussion of methods to improve the overall financial performance of the program.
Learning Your Program’s Finances One method is to think of this as a performance improvement process, using the methods of quality and performance improvement introduced by W. Edwards Deming. Mr. Deming, a noted improvement expert, said “In God we trust, all others bring data.” Having your data, knowing your data, and presenting your data in meaningful ways to your customers at regular intervals are key components of documenting your program’s value and mitigating threats. Gathering each of the data elements below will take time. But knowing how to access the data and the story they tell about your program will help in optimal positioning. You should access: 1. Copies of monthly cost center reports. There will be two cost centers on the hospital’s general ledger for hospital-owned programs, so you should receive two different sets of financial information. 2. The hospital’s monthly financial reports as presented to the board. If they are not readily available, data are available on the Office of Statewide Health Planning and Development (OSHPD)10 Web site. Included are comparative financial data for the requested quarter, the quarter immediately prior and the quarter one year prior. Annual hospital data11 are also available; however, neither data set will be real time (i.e., how did the hospital perform financially during the current month?). 3. Trend data (e.g., month-by-month and quarter-by-quarter information on your program) available from your program’s administrator, to include: a. Hospital net revenue b. Hospital expense c. Hospital P/L d. FPC net revenue
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California Academy of Family Physicians