7 Financial KPIs Every Medical Group Should Review Monthly

Financial statements become more useful when leaders review a focused set of measures every month. The goal is not to create a large dashboard. It is to identify changes early and connect them to decisions.

1. Net collection rate
Compare payments received with the amount your practice expected to collect after contractual adjustments. Review changes by payer, provider and location where the source data supports it.

2. Days in accounts receivable
Days in A/R estimates how long revenue remains outstanding. A rising trend may point to billing delays, denials, posting issues or changes in payer behavior.

3. Accounts receivable over 90 days
The aging mix adds context that an average can hide. Track the share of receivables older than 90 days and investigate material movements.

4. Revenue and collections by provider
Consistent provider reporting helps leaders understand production, collections and timing differences. Use the same definitions each month so comparisons remain meaningful.

5. Operating margin
Review revenue after operating expenses and separate recurring costs from unusual items. Margin trends help show whether growth is translating into sustainable performance.

6. Staff and provider compensation as a percentage of revenue
Payroll is often one of a medical group’s largest costs. Monitor it alongside staffing levels, scheduling capacity and provider productivity rather than in isolation.

7. Cash on hand and short-term cash forecast
A monthly cash view helps leadership plan payroll, taxes, equipment purchases and expansion. Combine the current bank position with expected inflows and committed outflows.

These measures work best when the underlying accounting records, billing reports and bank activity are reconciled. QonsultFirm tailors reporting to the practice’s systems, service scope and available source data.

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