Here’s a short but sweet mental/financial exercise which can give you an idea of how much you may be losing in your practice, or more positively stated, how much more you COULD be gaining.
First of all figure out how much you’re producing per month. Then figure out, or estimate, what you think you COULD be producing every month without increasing your staff or raising your overhead, except for maybe some materials.
If you’re producing less than you COULD with your existing overhead, you’re losing money!
For example, if you’re producing 50k per month but actually COULD produce 75k per month without increasing your staff and basic overhead, you’re paying the overhead of a 75k per month practice but are only producing 50k per month. You are therefore LOSING 25k per month! Multiply that times 12 and in this case you’d be losing $300,000.00 per year!
How much are YOU losing per year when you do this calculation with your actual figures?
Once you figure that out you need to figure out why. Is it not enough new patients or is it that you’re not getting enough of the new, or current, patients onto the treatment they need? Or is it something else?
These things are essential to figure out, for the practice owner who’s interested in expanding rather than simply coasting along.