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
We’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?