Management reporting

This year continues to be challenging for everyone, in particular practice/business owners and their managers as they continue to keep the practice on track against its strategic plans. Central to this are management reports. These are prepared for stakeholders, and measure how the business is going over an extended period at a reasonably high level.

How often management reports are prepared depends on the needs of the practice, but they typically cover a three monthly, or quarterly, period.  Financial reports might be prepared more often, usually on a monthly basis.

There is a wide range of accounting software available, which will generate various reports. Your PMS will provide you with information to report on other areas.

The content and layout of the reports will vary depending on the practice. But there are some basic guidelines that apply to most, if not all, management reports.

• Simplicity is key

An effective management report is clearly laid out, so the stakeholders can easily see the areas that need their attention. Think about using a simple traffic light report or dashboard for reporting against objectives – where ‘red’ needs action to be taken and should include a recommendation, ‘orange’ is slightly below target and ‘green’ is at target or a better result than expected. Charts and diagrams are also a good idea, rather than endless screeds of detailed financial data.

• Take a medium-term perspective

Management reports shouldn’t get down to the detail of how the practice is operating on a day-to-day basis. At the same time, it can’t take too long-term a perspective, and miss opportunities to improve things in the here and now. Instead, management reports need to take a medium-term perspective, perhaps rolling three month and twelve-month intervals, identifying trends and instances where things haven’t gone according to plan or are better than planned, with recommendations to address the issues highlighted or opportunities identified.

• Provide an overview of the key areas of the business

Ideally, management reports should provide a reasonable overview of the various parts of the business, at which the board and stakeholders can request more information about specific details if they see anything concerning.

Typically, management reports will be made up of (or read in conjunction with) the following reports:

Financial reporting

• Actual vs Budgets and Cash Flows (reasons for variances with recommendations)
• Discounting
• Number of consultations and fee income per week
• Utilisation rates
• Average fee per consultation
• Average consultation length
• Debtor’s report
• New enrolments and patients leaving the practice
• Missed appointments (DNAs)
• Future asset purchase recommendations and costings
• Reporting on debts/loan facilities, such as refinancing and overdrafts

Clinical and Quality Reporting

• Clinical project reporting
• Performance programme reporting
• Clinical policies review/update
• Critical incident reporting and analysis
• Privacy breaches and update
• Complaint and patient satisfaction reporting
• Professional development and quality improvement plan
• Progress toward accreditation
• Legal compliance audit

Health & safety reporting

• Risks and hazards identified/compliance
• Accidents that have been reported
• Incidents reported to WorkSafe
• Critical incidents/near misses
• Sick days taken and accrued leave balances
• Health and wellness initiatives

Resources reporting

• Recruitment and retention planning, succession planning
• Staff training and development plan reporting
• Staff performance management, disciplinary matters
• Staff satisfaction. workplace morale
• Population analysis, staffing ratios and workforce planning
• IT systems report
• Premises and asset management

Market update and initiatives

• Covid-19 update
  
  
• Sector update
  
  
• Technology update
  
  
• Workforce issues