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The New Evolution of Healthcare Financial Reporting

Kim Anselmo - Tuesday, November 06, 2018

Healthcare Financial Management Reporting DashboardHealthcare organizations love to slice and dice data coming from their electronic health/medical record (EHR/EMR) system, payroll software, third-party billing systems, practice management software, and their accounting software.

However, because of having these disparate systems, many do not have the ability to integrate this data into one set of reports, so they resort to the necessary evils of manual data entry, spreadsheets and email.

Fortunately, Sage Intacct offers a compelling healthcare financial management alternative. With the combination of multi-entity financial reporting, a dimensional chart of accounts and simple but visual reporting tools makes healthcare financial reporting far more simple, timely and effective – so your team can focus on making smart choices rather than being mired in manual office labor.

Multi-Entity Financial Reporting

The complexity of financial management reporting across multiple locations can quickly escalate into a resource-consuming matter of unnecessarily complicated financial logistics - especially when you consider decentralized payments, inter-entity transactions and possibly different currencies. As a result, healthcare financial managers with multiple locations need a single, financial management system that can help them close their books more efficiently while remaining compliant.

With Sage Intacct financial management software enabled by multi-dimensional, multi-ledger capabilities, data can be entered and reviewed so that it is aligned with how your organization is managed—by location, department, physician, patient, etc. using real-time performance analysis.

Dashboards not only reduce reviews to a minimal number of clicks, but also allow reports to be customized by audience, from board members to physicians. The result is improved visibility into the true cost of each action the organization takes at an individual level and as an entity.

Dimensional Chart of Accounts

Most accounting software applications like QuickBooks, Microsoft Dynamics (AX, GP, NAV), NetSuite, and Blackbaud use a hard-coded, linear and somewhat antiquated structure for the chart of accounts. This requires users to create a separate general ledger classification for each location, department, physician, patient, project, and fund (nonprofits) – even when those general ledger codes are the same.

For example, to track 3 locations, 5 departments, and 5 physicians, you'd need 75 account code combinations—and you'd end up with a complicated, unmanageable set of codes. A single new location or department can add hundreds of additional accounts. There are some healthcare organizations using 20,000-150,000 general ledger accounts.

In the case of QuickBooks, the linear architecture also causes the accounting software's flat file to become bloated, slow to search and at risk of being corrupted. The alternative is to manage project-level information in spreadsheets, which is time-consuming and error-prone.

Dimensional chart of accounts lets you keep your chart of accounts and general ledger codes simple—you only need to set up primary account codes and then apply them to each location, department, physician, and patient via drop-down menus. As your organization navigates additions and changes, there's no need to add hard-coded segment combinations.

Sage Intacct Dimensional Chart of Accounts

Report Writing

Sage Intacct's financial reporting module makes it easier for you to get fast answers to questions about your organization. You can quickly view performance from any new angle you need. As you create reports, simply use drop-down lists to filter, group and organize your data by dimensions.

For example, you can go from a standard income statement to profitability by location or physician with a few clicks of the mouse.

Without dimensions, customized reporting requires a programmer specially trained by your financial management software vendor, often costing over $300 per hour. This reporting capability is not possible in QuickBooks.

Sage Intacct's financial reporting module can save at least 10-15 hours per month spent preparing financials and trustee reports, and allow our clients to slice and dice financial data coming from your EMR/EHR, payroll and practice management software – to your heart's content.

Data Visualizations

Sage Intacct's data visualization allows you to quickly surface key insights, and see what you've been missing.

You can flag important trends, critical comparisons, missed or hit targets, anomalies and outliers, and more, to instantly gain key insights, before drilling down into the details. Data visualization reports include:

  • Conditional Highlighting: see if you've cleared the bar—or not, with background colors that indicate when specific metrics fall above or below your pre-defined ranges
  • Sparklines: look back—way back—to plan ahead with sparklines that summarize historical numbers as miniature line graphs that reveal a metric's trend—over weeks, months, quarters, or years; this allows you to pinpoint which metrics are trending differently from others
  • Color Scaling: spotlighting the good, bad and in-between with single-color gradient backgrounds highlighting the high, low, and in-between values of individual metrics that roll up to a total; this allows you to easily identify how each metric is contributing to the overall number, where performance is relatively weak or strong, etc.
  • Trend Indicators: assess period-over-period changes with trend indicators that sit alongside the numbers to convey—with red, green or black arrows / dots—whether a given metric is increasing or decreasing; this allows you to quickly see how a metric has changed from the prior period

Dashboards

Sage Intacct's dimensional-enabled reporting leads to some powerful dashboard capabilities that you can build yourself with drag-and-drop capabilities and no need for IT intervention.

These dashboards can include reports, graphs, charts, visualizations, custom lists, calendars, links, and more. Using dimensional filters, you can instantly view the metrics on any given dashboard—while focusing on a specific location, department, physician, patient, etc.

For example, each clinic manager can view the key performance indicators (KPIs) they have select i.e. profitability margins and income statements in real time. This enables your organization to look forward instead of struggling to see and understand historical data – setting the stage for unhindered growth.

See how to create dashboards with Sage Intacct in the video below:

New Healthcare Financial Management Whitepaper

Let The Resource Group be your guide to determining whether Sage Intacct will satisfy your healthcare financial management needs. We can evaluate your current financial reporting and what you'd like to see, and show you how Sage Intacct financial reporting works. Download our white paper today.

See for Yourself

Contact us and we'll walk you through all the reporting and integration options for your organizations. We know it can get somewhat confusing but we can simplify and hep you identify exactly what you need so that you can make smarter financial management choices and instead focus your staff's time on enhancing patient care.

You can also learn more by watching Sage Intacct's on-demand webinar: Healthcare Financial Management Product Tour.

Contact us to learn more about healthcare financial management and reporting


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