Mastering the Metrics – Which KPIs Should You REALLY Track?
Episode 123: Mastering the Metrics – Which KPIs Should You REALLY Track?
You get what you measure. That’s the truth—whether we’re talking about healthcare, business, or even personal habits. In medical group management, this couldn’t be more important. The KPIs you choose to track will inevitably shape your decisions, your focus, and the behavior of your teams. Measure the right things, and you’ll drive alignment, efficiency, and growth. Measure the wrong things—or worse, measure nothing at all—and you’ll find yourself making decisions in the dark.
Today, we’re diving deep into the world of KPIs—Key Performance Indicators—and what you should really be tracking in your medical group. If you’re a physician leader, a practice administrator, or part of the C-suite in a private or hospital-affiliated group, this episode is for you.
We’re going to talk about the real risks of not tracking performance metrics—or tracking too many. We’ll explore the value of benchmarking, both against others and against yourself over time. And I’ll end with a practical breakdown of the top 5 KPIs your board should be reviewing regularly, plus another set of operational metrics every good administrator should be watching like a hawk.
And a word of caution before we get started—because this is something I’ve seen over and over again in the field: when everything is important, nothing is important. That’s why today’s conversation is about clarity and focus—because leadership is about making decisions, and decisions require data.
Let’s get started.
Let’s begin with a scenario. You’re sitting in a leadership meeting, discussing what feels like a never-ending list of challenges: staff burnout, falling margins, longer wait times, maybe some complaints rolling in. Everyone’s got a theory about what’s going on. But there’s no dashboard. No performance summary. No data to validate or challenge what you’re hearing.
This is the danger of flying blind. When you’re not tracking the right KPIs—or any KPIs—it’s easy to fall into reactive mode. You’re not leading with insight, you’re putting out fires. You’re managing symptoms without diagnosing the underlying condition.
The absence of measurement can feel like freedom at first—no spreadsheets, no dashboards, no tough questions. But it eventually leads to confusion, missed opportunities, and inconsistent outcomes. Without metrics, you’re guessing.
And equally problematic is trying to track everything. Data fatigue is real. Practices can become so overwhelmed with reports that no one knows what to do with them. That’s why this conversation isn’t just about measurement—it’s about focused measurement. Strategic measurement. Measurement with a purpose.
That brings us to benchmarking.
Benchmarking gives your KPIs context. When you’re looking at your performance, it’s essential to ask: compared to what? Without a reference point, it’s hard to know whether a number is acceptable, exceptional, or alarming.
There are two types of benchmarking, and both are valuable: benchmarking against others, and benchmarking against yourself over time.
Let’s start with external benchmarking. Comparing your metrics to those of similar organizations can help you understand where you stand in the broader healthcare ecosystem. Maybe your no-show rate is 7%. Is that good? Nationally, the average might be 5%—or 12% depending on your specialty. But without those reference points, you’re flying blind.
But external benchmarking has its limitations. Not all practices are structured the same way. Payer mix, region, subspecialty, service lines—all of these factors affect what’s “normal.” So while external benchmarks are helpful, they should be used as a guide, not as a gospel.
Internal benchmarking—tracking your own data over time—is where the real gold is. Trends tell a story. When you look at data month-over-month or year-over-year, you can detect patterns, identify early warnings, and celebrate progress.
Let’s say your Days in AR have slowly crept up from 36 to 44 over the past year. You may not have noticed the gradual change, but when you benchmark internally, the shift becomes clear—and it gives you the opportunity to course correct before cash flow becomes a crisis.
So—benchmark against others for context. Benchmark against yourself for insight. And always look for patterns over time.
Now, let’s talk about a common misconception when it comes to KPIs: that more is better.
I’ve walked into practices where the dashboards have dozens—sometimes hundreds—of metrics. Charts and graphs for every department, every task, every click. And here’s the problem: when everything is on the dashboard, nothing stands out. You can’t tell what actually matters.
This is where the “K” in KPI comes in. “Key” Performance Indicator. Not every performance indicator. Not every metric under the sun. Just the key ones—the ones that truly matter to your goals.
Tracking too many metrics leads to what we call “analysis paralysis.” Leaders can’t make decisions because they’re buried in data. It’s also demoralizing to staff. If they’re being asked to improve 15 different things, they don’t know where to focus—and they burn out.
So how do you choose the right KPIs? You ask yourself:
- Is this metric actionable?
- Does it reflect a strategic priority?
- Will it help us make better decisions?
If the answer to any of those questions is no, it might be time to let it go.
Let’s get practical now.
Which KPIs should be on your Board’s dashboard?
If you’re reporting to physician owners, a hospital system, or a governing board, your focus should be on high-level indicators that speak to financial sustainability, access, and performance. Here are my top five:
- Operating Margin
This is your big-picture financial health metric. Are you generating enough revenue to cover your costs and invest in the future? Operating margin is the clearest way to answer that. It also signals when expenses are creeping up or when revenue is under pressure. - Days in Accounts Receivable
Cash is king in private practice. The longer it takes to collect what you’ve earned, the tighter your operating flexibility becomes. Tracking Days in AR helps spot issues in billing workflows or payer delays early. - Provider Productivity (wRVUs per FTE)
Whether you use work RVUs, Total RVUs, visits per day, or sessions worked, having a normalized view of provider productivity and coding aptitude is essential. It helps ensure equitable workload distribution, informs compensation models, and supports growth planning.s - Patient Access – Days to Next Available Appointment
This one is simple but powerful. If your patients can’t get in, you can’t grow. Delays in access can signal provider shortages, poor scheduling efficiency, or burnout. And it directly impacts patient satisfaction. - Net Promoter Score (NPS) or Patient Satisfaction Composite
Quality of care is difficult to quantify, but experience is easier to track. NPS and other survey-based metrics give insight into how patients feel about your care—which ties back to retention, referrals, and revenue.
Now, let’s talk about what you should be tracking at the manager or operations level. These KPIs drive day-to-day decisions and performance improvements. Here are ten to consider:
- Denial Rate by Payer
This helps identify which payers are causing the most rework and delays. You can’t fix what you don’t see, and denial trends offer opportunities for better coding, documentation, or contract negotiation. - Charge Lag
This is the time from when a service is performed to when it’s billed. The longer the lag, the slower your cash flow. Tightening this window improves revenue cycle performance and improves cash flow velocity. - Staffing Ratio (Support Staff per Provider)
Overstaff and your margins suffer. Understaff and your providers burn out. Finding the right balance is key, and this metric gives you the data to manage it. - Schedule Utilization (%)
Are your appointment slots being filled efficiently? High utilization often correlates with strong access and revenue—but too high might suggest overbooking and burnout risk. - No-Show Rate
This metric impacts both revenue and patient care. High no-show rates reduce access and strain resources. Tracking and reducing this is low-hanging fruit for many practices. - Patient Turnaround Time
From check-in to check-out, how long are patients in the clinic? This impacts patient satisfaction, staff workflow, and clinical efficiency. - Phone Call Abandonment Rates
If patients can’t get through, they go elsewhere. This is especially critical in high-volume practices and specialties with high follow-up needs. Leaving your patients on hold interminably signals that you don’t really value their time. - Cost per Encounter
Understanding your cost structure at the visit level helps evaluate pricing, negotiate contracts, and plan service mix changes. - Authorization Delays
Track how long it takes to get prior authorizations and the impact on care delivery and revenue timing. This is a frustrating but essential metric. - Percentage of Clean Claims on First Submission
The goal is to get paid the first time, every time. A high clean claim rate means your front- and back-end processes are working well. 90% should be a baseline with 95%+ as best practice.
Notice something about all these metrics? They’re actionable. They’re specific. And they connect to broader goals like access, cash flow, and efficiency.
To wrap up, let’s go back to the core idea: you get what you measure.
Measurement isn’t about creating more reports—it’s about creating better decisions. It’s about clarity, alignment, and progress. When you choose your KPIs wisely, you empower your team to focus. You give your board the visibility it needs. And you, as a leader, can guide your practice with confidence.
But remember: if everything is important, nothing is important. Don’t overwhelm yourself or your team. Start with a focused dashboard, build consistency, and grow from there.
Thanks for joining me today. If this episode helped clarify which KPIs really matter in your practice, I’d love to hear from you. And if you’re wondering whether your current metrics are telling the right story, drop us a line—we’re here to help.
Until next time, stay curious, stay strategic, and keep mastering the metrics.
