It’s more than just a number…

Remember back in Physical Therapy school how difficult it was to develop your first treatment plan?

With practice, and many new patients, you developed the skillset and systems to evaluate and treat those patients accordingly.  Like these patient care processes, getting the outcomes you want from your business requires a data driven treatment plan.

First you must measure!  Your business treatment plan starts with defining and gathering business metrics, or key performance indicators (KPI), for your practice. KPIs help you achieve goals through the measurement of numbers that build toward your business goals.  These key indicators, typically evaluations, visits, and collections are metrics which can be measured and that will reflect success.  There are also a small set of performance indicators you track regularly that help achieve the goal of profit to your practice.

It’s one thing to measure but another to analyze.  When you have identified your KPIs, the important task each week is to investigate the underlying drivers, up or down, of those metrics.  For example, if revenues are down at a particular clinic, what was the cause? Was there a drop in patient visits? Was a therapist working fewer hours? Did your therapists charge less per visit? Once you understand what is changing and why, you can take specific actions to correct.  When you have the data, and the understanding, you’re in a good position to address the issue.

You can measure and analyze all day, but the real success comes when you act, or react!  Let’s say your clinic’s revenue has dropped by 10%.  Drilling down, you find that your clinic has fewer scheduled visits with less new patients this month compared to last.  Drilling down even further, you find referrals have dropped off and more specifically, it was one specific doctor who stopped sending referrals. Now, you’re ready to find the root cause and you’ve now established the link between lost revenue to follow-up on referrals! You implement a program which has turned a problem into an action plan and a business opportunity.

You don’t know what you don’t measure, and when you do measure things will improve!  Do you need helping to learn what to measure?  Schedule a FREE consultation to see how we can help!

Andrew Vertson, PT, DPT, ATC
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