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Key financial indicators and ratios: How to use them for success in your practice

      Highlights

      • The most important ratio for radiologist leaders is the operating margin.
      • Accounts receivable is often the largest asset in a radiology practice.
      • Collection expenses and bad debt can be mitigated somewhat by an efficient front office and billing department.

      Abstract

      Accounting and finance are not typically a core educational offering in medical education. However, for physician leaders and leaders-in-grooming, it is prudent to be familiar with key financial indicators and ratios. The purpose of this review article is to provide fundamental information for emerging radiology physician leaders by describing important financial indicators and ratios, how they are defined and calculated, and, most importantly, how they can be interpreted and utilized for improving practice performance.

      Summary sentence

      Understanding and implementing key financial ratios and indicators is important to maintain and improve financial performance in radiology practices.

      Keywords

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