October 29, 2020
Strength in Numbers: KPIs for PT
I’ll be blunt: numbers are not my thing. I trudged through math class each year of my schooling, and rejoiced like never before upon walking out of my last college calculus exam.
Even I must admit, though, that numbers can be of immense value. Straightforward statistics such as KPIs are one fantastic example.
KPI stands for Key Performance Indicator. Key Performance Indicators are values that demonstrate how effectively a company is meeting its primary business objectives. KPIs are paramount to successful business for two main reasons:
1. KPIs keep objectives at the forefront, encouraging productivity and innovation. Concrete measurables will help motivate your team to improve. There’s nothing like a little bit of competition to get people going!
2. KPIs make for effective practice management by indicating points for growth. They will allow you to clearly pinpoint your weaknesses and develop strategies for improvement. It’s much easier to grow when you know exactly what needs improvement.
Ultimately, KPIs are a form of communication. Those that are clear and succinct will be the most effective. Before selecting your KPIs, consider your organizational objectives and ask what information will best equip you personally for success. The following five KPIs provide a great starting point!
Net Revenue per Month
This is perhaps the most fundamental KPI. Tracking your net revenue per month will help you to determine your baseline and set a trajectory for growth. Comparison of net revenue between months will reveal whether or not you are adhering to your trajectory.
Profit per Visit
Profit per visit is the division of profit over the number of patients seen in a given time period. This is a clearer indicator than simply the number of patients seen, as it reveals how efficiently you are managing your time. After all, wouldn’t you rather see fewer patients at higher earnings per visit than see 30 patients per day at minimal earnings per visit? Not only does patient overload result in burnout, it negatively affects the quality of care you are able to provide (See Back to the Basics). Understanding your profit per visit will tell you if you’re working smart, or just too hard.
Revenue per Therapist
As is the case with profit per visit, it’s important to look at how much revenue each of your therapists is making, not just the number of patients they are seeing. Use this indicator to understand the effectiveness of your individual therapists and provide clear feedback.
Referrals are a wonderful indicator of both customer satisfaction and growth potential. It says a lot about the quality of care you are providing if your clients not only keep coming back, but encourage their friends and family to come too.
Marketing metrics reveal the effectiveness of your marketing strategy. It’s important to know whether or not your strategies are effective, as ineffective strategies make for a lot of wasted income. Two great starter marketing metrics are Customer Acquisition Cost (CAC) and Vacancy Rate.
CAC directly accounts for the amount of money you put into your marketing, then dividing this amount by the number of new patients generated in a given period of time. This result indicates the return on your marketing investment.
Vacancy rate is the percentage of unbooked time on your (and your therapists’) calendar. A high vacancy rate suggests that more efforts should be put towards disincentivizing no-shows and cancelations, and may suggest a need for more efficient scheduling.
With PtEverywhere, you’ll be equipped to manage all of these metrics and more… from your pocket! When you are successful, we are successful. Are you ready to team up?