The Power of KPIs

In the ever-evolving world of healthcare, running a successful chiropractic or physical therapy clinic requires more than just skilled hands and good intentions. It demands a data-driven approach to measure success and ensure growth. In our latest episode of the Seven Figure Chiro Podcast, we dove deep into a topic that separates thriving practices from struggling ones—Key Performance Indicators (KPIs).

If you’ve been hesitant about implementing KPIs in your practice or simply don’t know where to begin, this blog post is for you. Let’s break down why KPIs matter, what to track, and how they can transform your business.

Key Performance Indicators (KPIs) are measurable metrics that gauge the performance and success of your business. Think of them as the vital signs of your clinic—they give you real-time insights into how healthy your practice is and where adjustments are needed.

KPIs help in:

1. Setting Targets: Establish clear goals for growth and performance.
2. Tracking Progress: See how well you’re meeting your goals over time.
3. Making Data-Driven Decisions: Use metrics to strategize and solve problems before they become critical.
4. Comparing Performance: Understand where your clinic stands locally and nationally.

Just like a doctor uses health markers like cholesterol or blood pressure to predict potential issues, KPIs in your clinic serve as early warning signs for problems and opportunities.

To keep things simple, here are four essential KPIs we track in our clinics:

1.New Patients:

• These are individuals visiting your clinic for the first time or returning after a break of three years or more.
• Tracking new patients allows you to measure the effectiveness of your marketing efforts and ensure a steady stream of new business.

2.Reactivations:

• Patients who were previously treated at your clinic but have returned within three years.
• Understanding your reactivation rate helps you gauge patient satisfaction and loyalty.

3.Total Patient Visits:

• This metric includes all visits, whether they’re new, recurring, or reactivations.
• Tracking total visits gives you an overall picture of clinic activity and highlights trends over time.

4.Patient Visit Average (PVA):

• This is the average number of times a patient visits your clinic during a specific period.
• Calculated by dividing the total patient visits by the number of new patients, this metric reflects the effectiveness of your treatment plans and patient education.

In addition to patient metrics, tracking financial KPIs is critical to ensure profitability. Two important ones are:

1.Billed Per Visit Average:

• This is the total amount billed to insurance or patients divided by the number of visits.
• If you’re an insurance-based clinic, your billed amount will differ from what you collect.

2.Office Visit Average (OVA):

• This is how much you actually collect per visit and represents the money deposited into your bank account.
• For cash-based clinics, your billed and collected amounts should match.

By understanding these financial KPIs, you can determine how many patient visits or new patients are needed to cover expenses and achieve profitability. For example:

• If your clinic expenses are $25,000 per month and your OVA is $50, you’ll need 500 visits to break even.

KPIs are invaluable when making decisions about scaling your practice. Here are two examples:

1. Adding Team Members:
   Knowing your current PVA and OVA allows you to predict how much additional revenue a new doctor or staff member can bring in and, in turn, how much you can afford to pay them.
2. Marketing ROI:
   KPIs help you assess the return on investment for your marketing campaigns. If you know the cost to acquire a new patient, you can optimize your budget and marketing strategies to maximize growth.

To illustrate the importance of KPIs, consider a visit to the Mayo Clinic for an executive exam. Doctors monitor health using a range of metrics—blood pressure, cholesterol, triglycerides, and more. These numbers tell them if your body is in balance or if there’s a risk of disease.

Your chiropractic practice works the same way. KPIs such as new patient counts, reactivations, and patient visit averages provide insights into the health of your business. Ignoring these metrics is like driving blindfolded—problems are inevitable, and opportunities for growth are missed.

While there are many software tools available to track KPIs, we’ve found that custom spreadsheets offer the most flexibility. They allow you to:

• Tailor metrics to your clinic’s unique needs.
• Track performance by provider to identify individual strengths and weaknesses.
• Plan for growth by forecasting new patient numbers and revenue.

If you’re just starting out or looking to scale, we’re happy to help you build custom KPI tracking systems for your practice.

Running a data-driven practice is essential to achieving the success you deserve. By consistently tracking and analyzing KPIs, you can make informed decisions, solve problems proactively, and grow your practice into a thriving, seven-figure business.

Ready to take the next step? Visit us at sevenfigurechiro.com to learn more about integrating KPIs into your clinic. Whether you’re starting from scratch or scaling an existing business, we’re here to help.

Until next time, keep up the good fight!
– Dr. Jeff Berard & Kristin