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The NetMinder Blog

Gauging the Productivity of Your Network Development Activities

Posted by Susan Donegan on Wed, Mar 07, 2018

When you subtract the number of providers who leave the network from the number who've joined for a time period, you get an important metric, Net Change. Net Change measures the overall growth in a network. Potential clients are looking for long-term relationships, and while losing providers isn’t positive, the ability to replace them efficiently is a strength.  

net change.jpg

In the example above, while Network A lost 8% of its providers during the time period versus only 6% for Network B, it was able to more than replace them, with adds of 14%. Network A’s net growth of 6%, compared to the competitor’s growth of just 2%, can be positioned as a clear advantage. From a management perspective, Net Change also serves well as a key performance indicator for provider relations teams.

Another important metric is Total Change, which demonstrates the amount of movement in a network or a market. While Net Change measures network growth, Total Change simply measures movement. It shows the overall change in the makeup of the network over time. Using the previous example, Network A had a total change of 22% (14% adds plus 8% drops) versus Network B’s total change of 14% (8% adds plus 6% drops.)

total change.jpg

Employed by itself, Total Change is not all that revealing. However, when combined with Net Change, it creates a powerful new metric for gauging the productivity of your network development activities compared to internal benchmarks and relative to your competition, which we call the Network Productivity Index.   

Download our whitepaper to better understand the dynamics of provider networks and measuring all of the productivity index components - adds, drops, net change and total change.

Tags: compare networks, network comparison tool, network growth, health insurance, network productivity, healthcare providers

What Gets Measured Gets Managed - Net Change and Total Change

Posted by Susan Donegan on Fri, Apr 28, 2017

When you subtract the number of providers who leave the network from the number who've joined for a time period, you get an important metric, Net Change. Net Change measures the overall growth in a network. Potential clients are looking for long-term relationships, and while losing providers isn’t positive, the ability to replace them efficiently is a strength.  

net change.jpg

In the example above, while Network A lost 8% of its providers during the time period versus only 6% for Network B, it was able to more than replace them, with adds of 14%. Network A’s net growth of 6%, compared to the competitor’s growth of just 2%, can be positioned as a clear advantage. From a management perspective, Net Change also serves well as a key performance indicator for provider relations teams.

Another important metric is Total Change, which demonstrates the amount of movement in a network or a market. While Net Change measures network growth, Total Change simply measures movement. It shows the overall change in the makeup of the network over time. Using the previous example, Network A had a total change of 22% (14% adds plus 8% drops) versus Network B’s total change of 14% (8% adds plus 6% drops.)

total change.jpg

Employed by itself, Total Change is not all that revealing. However, when combined with Net Change, it creates a powerful new metric for gauging the productivity of your network development activities compared to internal benchmarks and relative to your competition, which we call the Network Productivity Index.   

Download our whitepaper to better understand the dynamics of provider networks and measuring all of the productivity index components - adds, drops, net change and total change.

Tags: network productivity, network growth, health insurance, healthcare providers, compare networks

Measuring Productivity and Activity in Provider Network Recruiting

Posted by Laura McMullen on Thu, May 29, 2014

As you can imagine, we’re always thinking about building, maintaining, and selling provider networks. The most frequently asked question we get is how can I show my network in the best possible light; even if it isn’t the largest in a particular geographic area? One way is to look at recent growth (or contraction) trends.

There are several metrics that illustrate growth or contraction:

  • Adds: number of providers that were new to a network since the last update
  • Drops: number of providers that left a network since the last update
  • Net Change: difference between Adds and Drops
  • Total Change: total of Adds and Drops

Each metric has value, depending on the analysis you are doing. For example, simple counts of Adds and Drops measure the activity in a network while Net Change shows growth over time.

The Network Change reports in NetMinder analyze a network at two points in time. They bring all four metrics into one convenient report for selected specialties and geographic areas. Like other NetMinder reports, the summary report shows counts and the detail report gives lists of providers with their contact information. Watch a Quick Take video to see how the reports work.

Measuring Productivity Instead of Activity

network changeWe’ve all heard the expression “change for change’s sake” and know that’s not a good thing. In network management, the primary purpose of change is growth, so any change that doesn’t result in growth is potentially unproductive. That’s why we added the Network Productivity Index to the Network Change reports. This index compares net change to total change to measure how much activity is productive. The index values range between zero and 1; where 1 means that 100% of activities during the comparison period resulted in growth. For example, even though two networks in the same county are roughly the same size, Network A had fewer drops and less change resulting in an NPI of .42, significantly higher than Network B’s .04.

Measuring productivity is important because networks with high turnover may have higher rates. It costs more to recruit a new provider than to keep an existing one. Higher costs ultimately lead to higher rates so the more productive a network’s recruiters are, the more competitive the rates can be. And the ability to quickly replace providers who leave a network satisfies customers and members leading to high retention rates on the sales side, as well.

For more ideas about using network change metrics, download our whitepaper How Productive is Your Provider Network.

Which metric do you think is the most important metric in managing productivity for the networks you manage and sell?

Tags: network metrics, network rank, network providers, network comparison tool, network change, network management, network productivity, provider networks

 

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