Strategies for Evaluating a Trailing KPI

Episode 9

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Not all performance indicators are created equal. In this quick tip episode, Brandon Seigel introduces the concept of trailing KPIs, retrospective metrics that tell you what already happened, and explains how to use them strategically to drive better decisions going forward.

A trailing KPI is a key performance indicator calculated from past data. Unlike leading KPIs (which predict future performance), trailing KPIs reflect what has already occurred, making them the basis for evaluating results and diagnosing trends. Examples include net profit margin, revenue per session, patient acquisition cost, appointment no-show rate, and collection rate.

Brandon's recommended collection rate trailing KPI: 97% of collections received within 30 days of date of service for all primary payers. That's a measurable, retrospective benchmark that tells you whether your billing operations are performing at the level your practice depends on. When it drops below target, you have a specific, actionable signal to investigate.

The key to using trailing KPIs effectively is pairing each metric with a response protocol. If you're measuring a trailing KPI and there's no predetermined action when it falls outside the target range, you're just gathering data, not managing performance. Every trailing KPI should have a trigger: when we fall below X, we do Y.

Brandon cautions against measuring too many KPIs simultaneously. He recommends identifying three to five trailing KPIs per functional area that have the highest correlation to your practice's financial and operational health. More than that, and attention becomes diluted.

He also emphasizes tracking KPIs over rolling time periods, not just isolated snapshots. Comparing last month's collection rate to the prior three months reveals whether you're dealing with a one-time anomaly or a structural trend. Context is everything when interpreting performance data.

Key Takeaways

• Trailing KPIs reflect historical performance, use them to diagnose trends, not just record outcomes
• Pair every trailing KPI with a defined response protocol for when targets are missed
• Limit tracking to 3–5 high-impact trailing KPIs per functional area
• Compare metrics over rolling time periods to distinguish anomalies from trends
• A 97% collection rate within 30 days is a strong benchmark for primary payer performance