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Financial Management - Ratios

A guide on common ratios used to analyze your practice's financial health.

Please note - this information serves as a general guide. Please consult with your own accountant or practice management professional for specific questions.

Ratio	Formula
Collection Ratios
Gross Collections Ratio	Gross Revenue/Gross Charges
Net Collections Ratio	Net Revenue/Net Charges
Contractual %	Contractual Adjustments/Gross Charges
Days in AR	AR/Gross Charges x (1/365)
% Change in Gross AR	Ending AR - Beginning AR/Beginning AR
% Change in Net AR	(Ending AR - Beginning AR) - AR in Arrears/Beginning AR-AR in Arrears
AR per Physician	Ending AR/Number of Physician FTEs
Net Revenue to FTE Physician	(Patient Revenue-Refunds)/Physician FTEs

Solvency Ratios
Current Ratio	Current Assets/Current Liabilities
Overhead Ratio	Overhead Expense/Gross Revenues
Days Cash On Hand	Cash + Marketable Securities/(Total operating expenses)/365

Other
Staff Hours per Visit	FTEs x 2080/Total Visits

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