Physicians often have the idea that practicing medicine is their job and the business part to worry about is someone else’s. A phrase like “revenue metrics” belongs only to boardroom meetings and slide shows.
Maybe once upon a time such mindset worked and worked well.
Those sweet days are over!
Financial data and metrics are no longer the babies of professionals alone.
If you are in business, even in physical therapy private practice, you have to pay attention to your revenue data and metrics.
No one will be able to look after your financial health better than yourself. You are your own financial doctor if you wish to stay fit financially.
Following are a few revenue metrics that you must pay attention to.
Otherwise, they may cost you patients, productivity, and profit.
1. Each month Track Revenue Not Bill!
Many make the mistake of doing this.
Keep tracking the bills.
But you must get to know your net earning per month (that is earning minus costs).
Because only this way you can assess your billing and the overall financial health of your business.
This should be your benchmark.
Based on this you can dive deep to find out how good (or bad) you are doing, and can act accordingly.
2. Know Your Net Profit (or Loss) Per Visit
- Calculate the average money that you are collecting from each patient per visit and also from each insurance carrier. Average them. So you know who’s paying what. Comes handy if you wish to modify your fee schedules.
- Once you know net revenue per visit, subtract your net cost per visit to determine your net profit per visit. This tells you whether your clinic is actually running a profit or making a loss.
3. Get a Therapist’s Productivity
Gone is the time to count how many patients each therapist sees in a day.
You need to get past that and get what’s the revenue coming in from each therapist or what we call revenue per therapist.
Calculate the average amount of revenue each therapist is generating—per month, per day and even per visit.
That way, you can ensure your therapists are managing their time effectively and also billing appropriately for the services they provide.
4. Space Counts Too!
Nothing comes free, not even space. Because you pay for everything right? So consider that too as a metric.
This is something called revenue per square foot.
You get this by dividing your total annual revenue by your clinic’s square footage and get to know how efficiently you are using your clinic’s space.
If you get a low figure that could mean that you have too much real estate and not using to the maximum.
The values could range from as low as $61 to a high of $550.
A high figure may indicate that it is time to upgrade.
To sum up then…
You need to be in complete control of your finances in order to run a successful practice. Be it billing, payments, insurance claims, productivity, space management anything and everything.
Whether you are managing your practice by yourself or have a large staff, it is very important to have a clear picture of how things are running. Physical therapy software programs help you do just that.
Apollo Practice Management is a SAAS-based physical therapy software provider that offers flexible model applications for Physical Therapy practice management.
Use physical therapy software programs that optimize real-time information for tracking business growth and facilitating better decision making.
The most successful physical therapists have access to reports about every aspect of their practices. Just with a mouse click or screen touch.
Why not get a FREE demo of PT practice management software immediately and see for yourself?