KPI Providers Meeting

1. Provider Audit
Financial KPI
Scorecard

2. Our Role in the Community
We prioritize services
and programs based
on the needs of our
community.
Plan
We fund mental health
and substance use
prevention, treatment
and recovery services.
We evaluate the quality
and effectiveness of the
services delivered in our
system.
Fund
Evaluate

3. Provider Audit Financial KPI Scorecard
Purpose:
• Provide transparency to our planning, funding, & evaluating process
• Ensure the ongoing strength of our network of care by identifying and addressing potential issues
When:
• Shared annually with our Board of Trustee Finance Committee
How:
• The scorecard will allow for an assessment of a provider’s financial strength based on several factors
• Five KPIs from the prior two audits will be scored against a standard to determine a risk score
• The year over year change in those five KPIs will be scored to determine a trajectory indicator
• The % of funding to total revenue received from ADAMH
Outcomes:
• Generate list of providers for further review with a focus on understanding financial position and
partnering on potential technical assistance.

4. Audit Key Performance Indicators
Each Indicator is weighted equally
Meeting or exceeding the standard results in 1 point
Risk Scoring is done on a 10-point scale
○ Low Risk = 80% or greater
○ Medium Risk = 40% to 70%
○ High Risk = 30% or lower
Year over Year Trajectory Indicator Scoring is done on a 5-point scale
○ 3 of 5 indicators decline = Negative
○ 3 of 5 indicators improve = Positive

5. Example Scoring and Sample Scorecard
Provider Name Description 2018 2019 2018 KPI Grade 2019 KPI Grade YoY Grade
Example Provider Cash to Average Monthly Expenses (Days) 60.00 55.00 Positive Positive Negative
Example Provider Current Ratio 1.02 1.01 Positive Positive Negative
Example Provider Debt to Equity Ratio 0.80 0.70 Positive Positive Negative
Example Provider Net Assets 1,000,000$ 950,000$ Positive Positive Negative
Example Provider Revenue to Expenses 105% 103.00% Positive Positive Negative
Provider scores 10 out of 10 points for a 100% that results in Low Risk
Provider year over year trajectory is negative due to 5 of 5 metrics declining
Provider Risk Score
YoY
Trajectory*
Revenue % from
ADAMH
Example Provider 100% Negative 55%
Sample Scorecard

6. Questions?