Importance of KPIs
Every business has KPIs – Key Performance Indicators, showing how the business is doing over time – by week, month, quarter, year.
And Chiropractor’s Practice is not exception. While the basic principles are the same for any business, the specific details could vary:
- You can manage and improve only what you track
- You can track what you measure
The question is still the same: How much you are collecting and how much you are spending?
What’s the ratio between collections and spendings?
Specific numbers would be different for various Business and Practice types.
Here are basic 5 metrics for any Practice:
- Collection goals
- Actual collections
- Total visits
- Total cost of running the business
- Personal expenses
Based on these 5 numbers you can have 10 KPIs for DC Practice to track and improve the practice performance metics over time. Here are some of the KPIs:
- What’s your practice overhead?
- How may patients to have to see to cover practice’s overhead?
- How many patients to you need to see to cover life expenses?
- What is your cost per patient?
You should know and review these numbers every month.
The numbers change by week and month. And so you can review the trend – is it getting better or not.
(Credits: we are grateful to DC on Fire podcast for the inspiration)