The Numbers You Should Track & Measure in Your Private Practice: How to Grow Sustainably

Becoming A Clinic Owner: How to Transition From The Main Practitioner To Not Consulting At All
November 18, 2017
Laptop Business Life in Cafe
How to Automate Private Practice Operations: Using Asana To Automate Your Clinic
November 20, 2017

The Numbers You Should Track & Measure in Your Private Practice: How to Grow Sustainably

Know Your Business Numbers

Knowing your numbers is vital for growing your business sustainably, profitably and with enough cashflow. (c) Can Stock Photo / bloomua

Knowing Your Numbers is Knowing Your Opportunities

A really common question that private practice clinic owners ask us, is, “What numbers should you track and measure in your clinic to know how you are preforming and make plans for how you can grow“.

 

I’ve spoken with thousands of clinic owners and they say that knowing your numbers can be scary, overwhelming, boring or laboursome.

 

If you don’t know your numbers, how can you expect to grow profitably, sustainably and with enough cash flow? You MUST know exactly how your clinic is performing at any moment!

 

 

Im not suggesting that this is about being a “Million Dollar” health professional…because that doesn’t mean anything. There’s more to the story than money!

 

Yes… there is a commercial reality to being in business that demands you know your numbers, however, the intention of focusing on numbers is to help you make informed decisions.

 

Knowing your numbers allows you to track, measure and influence your finances so that you can reinvest in your team and reinvest in your patients!

 

If you are like most clinic owners then you just look at what’s left in the bank at the end of the month and hope there’s some left over… without any insights into why.

 

 

It was Peter Drucker who said, What get’s measured, gets managed!”. As a health professionals ourselves, and as part of the Clinic Mastery Business Academy, we work exclusively with private practice owners to measure your numbers daily so that you can Grow Your Clinic.

 

Given that our core role as a health professional is to see Patients, knowing how to ethically influence these numbers is important for your clients outcomes and your business’ success.

 

If you don’t like numbers, or you’re not good at math, suck it up – we’ll simplify it for you!

 

In this article I’m going to share with you 11 core measure that you should track and how to find out how your clinic is performing right now.

 

What Do The Numbers Mean For Your Clinic

 

Basically, every figure or metric is a measure of the effectiveness of a SYSTEM (s) in your business.

 

Every figure or metric is a measure of the effectiveness of a SYSTEM (s) in your business. Click To Tweet

 

True business owners can go on vacation forever because they own a system, not a job” (Robert Kiyosaki).

 

By knowing your numbers, you can make better, more informed decisions about when to hire, what to reinvest, how much to spend on marketing, how to reward your team, how much you have to live off etc

 

Business Academy Resources

Tracking Systems in Your Clinic

 

So, if every figure that we measure is just a reflection of how effective a system is, then you need to know how to write and implement Systems in your clinic.

 

Once the systems are in use, we need to:

  1. Monitor the system
  2. Review the results

 

1 of 2 – Monitoring the System

This can be as simple as a check box next to the item on the to-do list as a way to know it’s been done

 

  • Record successful completion of each task
  • Tracking sheets
  • Checkboxes
  • Tasks completed (e.g. using Asana for system management etc)
  • Reports in your practice software

 

Tracking Numbers Online

2 of 2 – Reviewing the Results

 

In the ‘corporate world’ you’d call the results Key Performance Indicators (KPI’s)

 

…but we’ve jazzed it up, thanks to Brigid from NSTT

 

We call them, Clinic Excellence Indicators (CEI’s)!

 

It’s nuances, however, the important thing is that they get reviewed.

 

 

You can use a simple spreadsheet, hand-written page, or detailed CEI dashboard, as long as it works for you.

 

Below is a suggested list of some CEI’s that can be used in your clinic, it’s not exhaustive but it does give you an idea of the types of CEI’s that can be used.

 

Be careful though…

 

Don’t fall into the trap of “analysis paralysis” by trying to do all of them. Just pick and choose what might work for you, and go from there.

 

 

CEIDescriptionVariablesCalculationE.g.  Target
Clients per dayA measure of the number of appointments per practitioner per dayTotal appointments (a)

Number of days (d)

a/d18
Rebooking %The percentage of clients seen that have a future appointment bookedTotal appointments (a)

# appts with no future appt booked (n)

(a-n)/a

(x100 for %)

95%
Ave FeeThe average fee received per appointment provided $ Total received (r)

Total appointments (a)

r/a$100
Client Visit AveThe average number of times a client will see you over a particular time periodTotal appointments (a)

Total clients (c)

a/c14 (lifetime)
Missed Appt %The percentage of appointments booked where the client doesn’t turn upTotal missed (m)  

Total appointments (a)

m/a

(x100 for %)

2.5%
Cancellations with no Reschedule (CNR)The percentage of appointment cancellations where the client doesn’t book another apptNumber of CNR’s (x)

Total reschedules (r) CNR’s)

x/(r+x)

(x100 for %)

20%
Utilisation RateThe percentage of allocated consulting time actually consultingTotal cells available (t)

Vacant cells (v)

Extra cells (e)

t-(v-e)/t

(x100 for %)

85%
$ per hourThe average amount a practitioner is billing per hour over a time period Total $ billed ($)

Hours consulting (h)

$/h$200
On Time ServiceThe percentage of appointments seen within 5 minutes of the scheduled appt timeTotal appointments (a)

On time (b)

b/a

(x100 for %)

80%
Lifetime ValueThe average total $ received per client over their lifetime with you.Total $ turnover ($)

Total No. of Clients (c)

$/c$1200
Conversion Rate (Admin)The percentage of phone call enquiries taken that result in an appointment bookedTotal phone enquiries (e)

Appointments Booked (b)

e/b

(x100 for %)

98%

Other Clinic Excellence Indicators 

 

Reports per New Patient

  • The percentage of new patients who have reports sent to other health professionals involved in their care
  • Good for keeping practitioners motivated to send letters / reports (internal marketing strategy)

 

New Patient Referral Sources

  • You are looking at where referrals of new patients come from as a percentage
  • Aim for 40% referral partners, 40% word of mouth (clients), 20% external marketing

 

Visits to Referrers & Business Partners

  • Track the number of visits to other health professionals who refer to your clinic
  • Could be coffee catch ups, dropping off a gift, saying hello in person etc

 

Referrals to Professionals in our Network – Outbound Referrals

  • Track number of referrals from your clinic to other people
  • If you have connected with other great professionals or businesses that you believe add value to your clients, you should refer regularly!

 

Help received from Team Member

  • Invite staff to share and record how they’ve been helped by other team members
  • We might use a platform like Bonus.ly for a social recognition culture

 

Wow Moments

  • Record moments of Wow to share with the team

 

Technical Knowledge Gained

  • Track events and knowledge received for professional development

 

Talks & Presentations Delivered

  • Track how many workshops or events have been given by team members (marketing)

 

Speaking to Group

Social Media Posts Published

  • Have your team engaged with social media or blog channels
  • E.g. Aim for one post per week from each team member

 

Track and Record Clinic Improvement Ideas

  • How to do things better
  • Team support
  • Service experience
  • Training suggestions

 

Benchmarking

In order to successfully build targets / benchmarks around each of your CEI’s,

  1. Firstly, use the CEI to track what is currently happening, get a baseline.
  2. Compare figures between practitioners, and from week to week or month to month.
  3. Decide on your ideal targets
    1. Keeping in mind clinic expenses, wages etc Have your accountant help you out
    2. Make reference to what other colleagues / practitioners in your area do.
  4. Then, Set the target.

 

Get Your Accountant to Benchmark You Against Other Clinics

At our recent Grow My Clinic Workshop we had Nathan Carger from Griffin O’dea Bowler Accounting to show us benchmarking reports and statistics of individual professions within private practice.

 

Accountant

 

This sort of data can be really insightful.

 

Conclusion

You need to keep it simple by deciding on the numbers that are most important to your clinic growth now!

 

Identify the 3 key numbers that you need to measure now to improve patient experiences and create consistency between practitioners.

 

Start with what is most urgent e.g. if you get a lot of cancellations, start there.

 

Now you have an understanding of all the numbers that influence the amount left in your bank at the end of the month you can take control over your growth.

 

The irony is that most health businesses are seriously sick on the inside because they dont know what’s happening on a financial front.

 

I think it’s much scarier not knowing what’s going on with the health of your clinic.

 

Remember, it’s not about being a “Million Dollar” health professional…The intention of focusing on numbers is to help you make informed decisions.

 

Knowing your numbers allows you to track, measure and influence your finances so that you can reinvest in your team and reinvest in your patients!

 

If you’re looking to take your practice to the next level, then perhaps the Clinic Mastery Business Academy  could be the right thing for you…

 

We work exclusively with private practice owners to measure your numbers daily so that you can Grow Your Clinic with clarity and confidence.

 

Until next time, remember to…

Live with Passion, because Everyday is an Opportunity for you to Make Your difference!

 

 

Daniel Gibbs
Daniel Gibbs
Hi! I'm Daniel. Proud father, problem solver and minimalist. Business is my vehicle for freedom, and people are my inspiration to live with passion and serve with care.

Leave a Reply

Your email address will not be published. Required fields are marked *