What Is The TRUE Value Of A New Patient?

Last week I was at a physical therapy marketing and practice development conference in Orlando, Florida.  I love these events because they always get my creative juices flowing and it is a great opportunity to meet like-minded practice owners.

During the many marketing discussions, the age old question came up:  what is the value of a new patient?  I love it when this question arises because everyone has a different answer.  All of those different answers cemented the fact that most practice owners don’t really know what that number is.

How do you calculate this magic number?  Most practice owners will say payments divided by evaluations.  Is that wrong?  No…but is it really correct? No…

First, you must remember that payment for those new evaluations (and treatments) won’t magically appear in your bank account (unless you are cash pay and they had better appear).  Depending on your payer mix this might be 14 to 45 days (or more).  In order to gain an accurate number, you need data for a number of months.

How do I calculate this number?  Quite simple…take data from multiple, consecutive, months (ideally six) and use this formula:  Payments minus expenses, divided by evaluations.  In order to provide care we must pay the rent, pay the staff, pay ourselves.  This net number will provide you with a more accurate, and true, value of those new patients.

Do you need help finding your true numbers?  Find out how our metrics sheets can simplify this process for you!

Andrew Vertson, PT, DPT, ATC
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