Managerial Analysis Reports

If you haven't already done so, please read the Financial Reports Overview and Reports Overview before continuing this topic!

Working with and learning the Sales reports

The revenue reports provide a great deal of information that is useful for clinic managers and other administrators, as well as client account managers, to review the revenues being generated in the Occupational Health clinic. These reports differ in the information they provide. Until you have worked with the reports for a while, however, the differences among them may seem elusive! The reports reflect the fact that there is a lag between the time a service is provided or a visit occurs and the time the fees for the service (visit) are actually billed and, therefore, "counted" on the organization's books.

It is predictable that, even after reading this topic carefully, you will have difficulty distinguishing the reports, even though you understand what you are reading! If you keep working with them, however, the differences will become apparent. It is important to understand the differences because you will probably not get the same totals for the same reporting period (i.e. the month of May) from each of the reports, because of the time lag discussed above. This may cause confusion, which will only be cleared up as you begin to distinguish the reports for yourself, and no longer have to refer to this manual to clarify the differences.

Note: Some of these reports are in the Clinic module, some in the Billing module, and some in both.

Sales Analysis report (Invoice date or Service date)

The Sales Analysis Report (also called the Revenue Analysis Report) displays what your organization invoiced and (optionally) what adjustments were made during the selected reporting period. It is normally driven by the invoice date, not the service date, for the items billed. (The report can be run by date of service, but it will only include items that have been posted to the A/R.) For example, a Sales Analysis for the month of May could include charges for services that were rendered in April, but that were not billed until May. This report may include adjustments made during the month, at the user's option.

This report answers the question "How much did we bill (book) this month?" The answer (i.e. the report) may be sorted by multiple variables, or any combination of two variables: i.e. employer account, carrier account, clinic, provider, service type, visit category, medical activity, etc.

This report is useful to analyze and rank billing accounts, since the report includes the percent that each account's total billing is of the entire billings for the reporting period.

An option for this report is to print a ranking type of report. There are two versions of this kind of report: a top n number of accounts by gross revenues, and a 6-month ranking report that shows revenues for the previous 6 months for the top n number of accounts. The latter version can be useful for showing trends in your top accounts.

A similar report is the Service Revenue Analysis Report. These two, while functionally similar, will not balance with each other. The Service Revenue Analysis Report reports on potential revenue as found in visit records, not billed income. It is based on service date,and it does not consider the difference between net and gross billing.

Transactions Analysis Report (Service Date)

The Transactions Analysis Report displays the financial value associated with all the visits that occurred during a reporting period. The report includes all service items for the period, whether or not the visits have been invoiced. It breaks out those charges that have been invoiced and posted to the Accounts Receivable from those that have been processed in the Billing program, but not yet invoiced or posted to the Accounts Receivable. This report also excludes adjustments.

If you were to take all the visits for the month of May, for example, and simply multiply them by the fees associated with the visits, you would be producing the Transactions Analysis report. This report is driven by date of service, not the invoice date. Therefore, it would not include items whose service dates occurred in a previous month.

This report would answer a clinic manager's question "How are we doing this month?" or, more specifically, "What is the financial value of the visits that have occurred this month?"

The answer to this question (i.e., the report) may be sorted by the following variables or a combination of any two of these variables: clinic, billing account, provider, or visit category.

This report is useful to generate an analysis for a specific employer of the charges that were associated with various visit categories, in response to an employer inquiry, "Give me a break out by category of what we were billed during X (a selected period)."

Billing Charges Analysis Report (Service date, more detail)

The Billing Charges Analysis Report is identical to the Transactions Analysis report, except in its level of detail. The totals for this report should equal the totals for the Transactions Analysis Report for the same period, but the detail will be different. This report displays the value of the medical activities (services) offered during the reporting period. It is driven by the service date, not invoice date. This report also answers the question "How are we doing this month?" Stated more specifically, this report answers the question "What is the financial value of the services we provided this month?"

The answer to this question (i.e. the report) may be sorted by the following variables, or a combination of any two of these variables: clinic, medical activity, billing account, or service type.

This report is useful to analyze the revenues associate with specific services, such as audiograms, PFTs, etc. It is also useful to analyze revenues by product line (service type), such as PT, Workers Comp, Employer Services, etc. It could also be used to answer an employer inquiry, "How much did you bill us for X (a service) during Y period?"

Summary

The following table summarizes the three sales reports:

This report	Is based on	and answers the question..	It includes	..and can be sorted by one or two of these variables
Sales Analysis	Invoice date or Service date	What did we bill (book) this month and what invoice adjustments did we make? or How did our accounts rank by revenues?	Invoices posted to the Accounts Receivable, and optionally Adjustments	Employer, carrier, clinic, provider, service type, visit category, medical activity
Transactions Analysis	Service date	How are we doing this month? or What is the financial value of the visits this month?	Visit charges processed but not invoiced, as well as invoiced visits	Clinic, account, provider, visit category
Billing Charges Analysis	Service date	How are we doing this month? or What is the financial value of the services this month?	Charges processed but not invoiced, as well as invoiced charges	Clinic, medical activity, account, service type

Experiment!

Because there are so many varieties of options for these reports, you should experiment with them until you find the versions that are most useful to your organization. An exhaustive list is not feasible in this manual. However, samples can be found in the Sample Reports book, and further information can be found in the Guide to Financial Reporting in Net Health Employee Health and Occupational Medicine document, available from Net Health, Inc.