What are your net revenues?

Net revenue…to many business owners this is a phrase reserved for a corporate board room.  To the astute physical therapy practice owner this phrase helps define the key driver of their business: profit.  Today I will share four revenue numbers that every smart business owner tracks on their road to success.

Net Revenue Per Month is one of two numbers that help define your success.  Many healthcare providers do a great job of tracking what they actually bill but many do not look at the actual net they collect.  Do not be confused with the gross collections because net collections are after your expenses are removed so this is actual profit!

Cost Per visit is exactly what you think it is…what does it cost you to provide a visit of care.  This includes all expenses from salaries and benefits to rent to administrative, billing, and marketing fees.  The simple way to determine is to take overall expenses in the month and divide by the number of visits.  This will tell the keen business owner what they need to adjust to improve their bottom line.

Net Revenue per Visit help the owner determine how well they are providing care and helps them determine if they should stay in-network, move out of network (contact Jerry Durham), or increase their cash prices.  Once you have determined the net revenue for the month, divide by the number of visits seen to determine what the net revenue per visit is.  A decent number is 10% more revenue than cost a great number is 30% revenue.

Revenue per Therapist is an often missed metric that owners look at.  All too often they are too concerned with therapist productivity, or how many patients should be treated each day.  They miss the actual number showing if the therapist is making, or losing, money.  Looking at the revenue per therapist will ensure the therapist is paying for themselves, and providing profit to the practice at the same time.

All of these revenue numbers should be tracked monthly and reported to the management team.  These are some key revenue metrics that every owner should track but these are not all.  You should continue to track all your weekly treatment statistics to ensure success in these revenue numbers.

Are you struggling with your numbers?  Click Here to schedule a FREE consultation to learn how we can help define and improve your number management!

Andrew Vertson, PT, DPT, ATC
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