AllerganBSM Cosmetic Surgery Benchmarking Database by lqz95924

VIEWS: 57 PAGES: 24

									    Allergan/BSM
   Cosmetic Surgery
Benchmarking Database

             Presented by:

             Glenn Morley
      Allergan Practice Consultant
           Program Overview

Voluntary participation of practices identified by
Allergan consulting team.
Practices may not reflect the “average” cosmetic
practice.
2007 is our 3rd year administering the survey.
Operating results are included for 2004, 2005, and
2006.
Data is cut by region.
Regions consistent with MGMA Annual Cost
Survey.
               Data Sources

Practice Financial Statements
Income Tax Returns
Productivity Reports
Employee Census Data
            Regional Breakdown




Legend
  East
  South
  Midwest
  West
        Comparative Summary of Database
              Practices by Region

 Region    2004    Pct     2005    Pct     2006    Pct

East        37    27.0%     39    30.5%     41    33.9%

South       47    34.3%     45    35.1%     45    37.1%

Midwest     17    12.4%     20    15.6%     14    11.6%

West        36    26.3%     24    18.8%     21    17.4%

  Totals   137    100.0%   128    100.0%   121    100.0%
             Comparative Summary of Database
                  Practices by Specialty

            Specialty             2004         Pct          2005         Pct         2006         Pct

    Cosmetic Dermatology1           38        27.7%           36       28.1%           41       33.9%
    Facial Plastics2                20        14.6%           19       14.8%           14       11.6%
    Oculoplastics                     3        2.2%            5        3.9%             3        2.5%
    Plastic Surgery                 76        55.5%           68       53.2%           63       52.0%

       Totals                      137       100.0%          128      100.0%          121      100.0%


1 Cosmetic Dermatology - Dermatology practices where 50% or more of collections are attributable to
  cosmetic procedures.
2 Facial Plastics - Plastic surgery practices that are limited to procedures of the face.
               Limiting Factors
Lack of consistency in data reporting.
Calculation of FTE physicians.
Cash reporting method of accounting.
Inconsistency with chart of account classifications.
Due to variance in the number of practices providing
data we have reported results as follows:
     Mean and/or median results are shown for
     indicators when more than 10 and less than 20
     practices report data.
     10th, 25th, median, 75th, and 90th percentile are
     reported when more than 20 practices provide data
     (unless indicated otherwise).
                               Net Collected Revenue
                                  per FTE MD/DO

$2,500,000




                                                                                                                                                                                  $2,232,704
$2,000,000




                                                                                                                                                        $2,034,079
                                                                                                                                                                     $2,025,620
                                                                                                                                           $1,722,404
                                                                                                                 $1,734,663
                                                                                                                              $1,675,878
$1,500,000




                                                                                       $1,278,630
                                                                          $1,320,877


                                                                                                    $1,205,551
$1,000,000
                                         $966,629


                                                               $972,020
                                                    $942,432
                  $743,748


                             $690,829
                             $738,969




 $500,000


          $0
                   10th                   25th                             Median                                  75th                                   90th
                 Percentile             Percentile                                                               Percentile                             Percentile

                                  Year                         2004                     2005                        2006
                               # Practices                     137                         128                         121

                                                               MDs/DOs
 NOTE: The results include actual net collected revenue of all MDs/DOs working in the practice,
                                  full-                            full-
       divided by the number of full-time equivalent MDs/DOs (a full-time equivalent MD/DO
                                                             The
       is assumed to work 1,600 hours or more per year). The cost of goods sold is included
       in revenue.
                      Revenue Rate per Hour
                         per FTE MD/DO

      $1,400




                                                                                                                                       $1,395
      $1,200




                                                                                                                     $1,271
                                                                                                                              $1,266
                                                                                                 $1,084


                                                                                                           $1,077
      $1,000




                                                                                                          $1,047
        $800




                                                                           $826
                                                                                  $799
                                                                                         $753
        $600
                                                $604


                                                              $608
        $400                                           $589
                           $462
                    $465


                                  $432




        $200

            $0
                    10th                     25th                          Median                 75th                90th
                  Percentile               Percentile                                           Percentile          Percentile
                                         Year                    2004                    2005              2006
                                  # Practices                        137                  128               121

                                                             all
NOTE: Calculated by dividing actual net collected revenue of all MDs/DOs by the total number
                                                              for full-
      of doctor hours worked. Hours worked assumes 1,600 for a full-time equivalent
                                  part-
      MD/DO and is adjusted for part-time practitioners.
                              Number of FTEs
                              per FTE Provider


  7.0




                               6.5
  6.0
              6.3


                      6.0
  5.0




                                              4.9




                                                             4.9
                                                      4.7
  4.0




                                                                                           3.7
                                                                                    3.6
  3.0




                                                                             3.3
  2.0

  1.0

  0.0
            25th Percentile                         Median                75th Percentile


                               Year         2004            2005         2006
                            # Practices      137            128           121

NOTE:                non-                                                         Provider
        FTEs include non-provider support staff working 2,080 hours per year. FTE Provider includes MDs,
        DOs, Physician Assistants and Nurse Practitioners.
Are we overstaffed or understaffed?
 Case study:
     2 FTE MDs, Collections per MD: 1.4 million
     Collections per FTE Employee: 280,000
     FTE Employees per FTE MD: 5
     Non-provider Payroll ratio: 15%
     Overhead Ratio: 56 %

Collections per MD: 2.9 million          Collections per MD: 1.3 million
Collections per FTE staff: 1.5 Million   Collections per FTE staff: 241K
FTE staff per FTE MD: 2                  FTE staff per FTE MD: 6.35
Non-provider Payroll ratio: 5%           Non-provider Payroll ratio: 18%
Overhead Ratio: 46%                      Overhead Ratio: 69%
                              Number of FTEs
                              per FTE Provider


  7.0




                               6.5
  6.0
              6.3


                      6.0
  5.0




                                              4.9




                                                             4.9
                                                      4.7
  4.0




                                                                                           3.7
                                                                                    3.6
  3.0




                                                                             3.3
  2.0

  1.0

  0.0
            25th Percentile                         Median                75th Percentile


                               Year         2004            2005         2006
                            # Practices      137            128           121

NOTE:                non-                                                         Provider
        FTEs include non-provider support staff working 2,080 hours per year. FTE Provider includes MDs,
        DOs, Physician Assistants and Nurse Practitioners.
                           Net Collected Revenue per
                               FTE Support Staff

$400,000




                                                                                           $377,015




                                                                                                                 $376,375
$350,000




                                                                                                      $364,677
$300,000




                                                                              $301,343
                                                      $292,775

                                                                   $290,478
$250,000
                               $237,205
                    $227,962




$200,000                                  $240,115

$150,000

$100,000

 $50,000

        $0
                  25th Percentile                                Median                   75th Percentile

                                          Year       2004                     2005       2006
                                      # Practices    137                      128        121

                                                           revenue                  full-
 NOTE: Calculated by dividing total practice net collected revenue by the number of full-time equivalent
                                                                Non-
       support staff (assumes 2,080 hours worked per year). Non-physician providers are not included
       in this calculation.
                 Non-Provider Payroll Ratio

    20.0%

    18.0%




                                       18.9%
                            18.3%
                    18.0%
    16.0%




                                                               15.1%

                                                                        15.2%
    14.0%




                                                     14.5%
    12.0%




                                                                                                     12.1%
                                                                                     11.5%

                                                                                             11.6%
    10.0%

     8.0%

     6.0%

     4.0%

     2.0%

     0.0%
                  25th      Percentile                       Median                75th      Percentile



                                       Year       2004                 2005     2006
                                    # Practices   137                  128       121

                                   non-
NOTE: Calculated by dividing total non-provider gross payroll by total practice net collected revenue.
                                                          employee
      Payroll includes gross wages and does not include employee benefits or payroll taxes.
                Operating Expense Ratio

      90.0%
      80.0%


                                    83.6%
                            79.5%
                    77.6%
      70.0%




                                                              74.5%
                                                      71.4%
                                              70.4%
      60.0%




                                                                                            63.6%
                                                                                    61.9%
                                                                            62.3%
      50.0%




                                                                                                                           55.1%
                                                                                                                   54.5%
                                                                                                           51.3%




                                                                                                                                            49.8%
                                                                                                                                                    48.2%
                                                                                                                                    45.7%
      40.0%
      30.0%
      20.0%
      10.0%
       0.0%
                    10th                       25th                         Median                          75th                     90th
                  Percentile                 Percentile                                                   Percentile               Percentile
                                            Year                      2004                          2005                   2006
                                        # Practices                   137                           128                    121

                                                            operating
NOTE: The operating expense ratio is calculated by dividing operating expenses by total practice
                                                          physician     non-
      net collected revenue. Operating expenses exclude physician and non-physician provider
                                                         depreciation
      compensation, bonuses, retirement contributions, depreciation and automobile expense.
                                                      expenses.
      The cost of goods sold is included in operating expenses.
Are we overstaffed or understaffed?
 Case study:
     2 FTE MDs, Collections per MD: 1.4 million
     Collections per FTE Employee: 280,000
     FTE Employees per FTE MD: 5
     Non-provider Payroll ratio: 15%
     Overhead Ratio: 56 %

Collections per MD: 2.9 million          Collections per MD: 1.3 million
Collections per FTE staff: 1.5 Million   Collections per FTE staff: 241K
FTE staff per FTE MD: 2                  FTE staff per FTE MD: 6.35
Non-provider Payroll ratio: 5%           Non-provider Payroll ratio: 18%
Overhead Ratio: 46%                      Overhead Ratio: 69%
          Net Collected Revenue per FTE
        Non-Physician Provider – Mean Value


    $450,000
    $400,000
    $350,000                                                                $416,675
    $300,000
                                                       $357,334
    $250,000
                                   $290,521
    $200,000
    $150,000
    $100,000
      $50,000
             $0
                                                           Mean

                                     Year            2004           2005           2006
                                  # Practices         21             19             24

                             non-                                                    practitioners)
NOTE: Calculated by dividing non-physician provider (physician assistants and nurse practitioners) revenue by the
                  full-                                                           (assumes
      number of full-time equivalent physician assistants and nurse practitioners (assumes 2,080 hours worked
                                                       revenue.
      per year). The cost of goods sold is included in revenue.
                             Net Collected Revenue
                              per FTE Aesthetician

 $300,000




                                                                                                                                                                                     $291,061
                                                                                                                                                               $283,518
 $250,000




                                                                                                                                                                          $264,974
 $200,000




                                                                                                                                                   $185,462
                                                                                                                             $187,802
                                                                                                                                        $181,254
 $150,000
                                       $55,298
                             $42,944
                   $42,869




                                                                                                            $126,636
                                                                                      $123,140
 $100,000




                                                                                                 $120,486
                                                                      $85,177
                                                            $83,144
                                                  $74,979


   $50,000

          $0
                   10th                            25th                               Median                                  75th                              90th
                 Percentile                      Percentile                                                                 Percentile                        Percentile


                                              Year                              2004                               2005                            2006
                                           # Practices                           67                                    70                           75


                                                                   full-
NOTE: Calculated by dividing aesthetician revenue by the number of full-time equivalent aestheticians
      (assumes 2,080 hours worked per year).
                              Rent Expense Ratio

           9.0%


                           8.8%
           8.0%


                                  8.5%
                        8.2%
           7.0%




                                            6.5%
           6.0%




                                           6.3%
                                          6.2%
           5.0%




                                                                    4.7%
                                                             4.7%
                                                            4.5%
           4.0%




                                                                               3.5%
           3.0%




                                                                                      3.4%
                                                                             3.2%
           2.0%




                                                                                                     2.4%
                                                                                                            2.3%
                                                                                              2.0%
           1.0%
           0.0%
                        10th               25th             Median            75th             90th
                      Percentile         Percentile                         Percentile       Percentile
                                      Year           2004            2005             2006
                                   # Practices       137             127              120

                                                            total
NOTE: Calculated by dividing total practice rent expense by total practice net collected revenue. Rent
                                                       expenses
      expense does not include additional occupancy expenses such as utilities and maintenance.
    Marketing Expense as Percent of
   Net Collected Revenue – Mean Value

$3,500,000                                                          $2,899,693
                   $2,661,349              $2,705,346
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000                     $87,492                    $97,563                $96,398
 $500,000                       3.3%                       3.6%                   3.3%

          $0
                        2004                       2005                   2006


                      Net Collected Revenue               Advertising/Marketing

                             Year           2004           2005         2006

                         # Practices         134            126          119

                                                     advertising/marketing
NOTE: The percentage shown represents the percent of advertising/marketing expense in comparison
      to total net collected revenue.
Practices with Non-Physician Providers

 90%

 80%
       82%      82%        79%
 70%

 60%

 50%

 40%

 30%

 20%
                                          18%          21%
 10%                                            18%
 0%
         MD/DO Only                With Non-Physician Provider



                Year        2004   2005         2006
             # Practices
                             25     23           26
              w/NPPs
             # Practices
                             137   128          121
             Reporting
           Achieving Optimal
          Practice Performance
Surround yourself with good people and good
information.
Routinely measure and benchmark practice results.
Measure patient and employee satisfaction levels.
Make practice planning a routine.
Strive to increase your personal productivity.
           Achieving Optimal
          Practice Performance
More can be better when it comes to your staff.
Hire “right” and invest in staff training and
development.
Show appreciation to your staff.
Understand your role as a leader in the practice.
      Remember….
 Good business decisions
     cannot be made
without good information!

								
To top