I’ve been lucky in my career to mainly focus on clinic revenue and creating revenue streams that feed each other, like rivers and streams.
Every clinic needs someone dedicated to revenue at all times, even if it's not a formal title like Chief Revenue Officer (CRO).
By growing clinic revenue, we can better serve our communities, compensate our staff fairly, and provide opportunities for advancement. One of the joys of being a clinic owner is providing the opportunity for someone to provide for themselves and their family. I have always had this want to be the ‘best in class’ when it comes to pay. But, for that, you need to continue to grow your clinic’s revenue.
Now, I am specifically not mentioning profit. As a CRO my philosophy is if I am getting 15% of 100, how can I get 15% of 200?
When working with a clinic owner, the first place I look is the fundamentals. These are the core processes that can make or break us. More specifically, I first look for revenue ‘leaks’ in these processes.
Key areas we focus on:
1. Use Data Analytics to Find and Plug Revenue Leaks
With the right clinic management software, you can leverage data analytics to uncover inefficiencies in your processes, such as low booking rates or high patient fall-off rates. Optimizing these areas leads to significant revenue growth without additional financial investment.
2. Drive Strategic Growth with Advanced Data Analytics
Think about expanding your revenue streams with options like telehealth, new services, or even strategic partnerships. With the right data at your fingertips, you can make informed decisions that lead to smarter growth strategies. It’s all about using your clinic’s data to identify what’s working and where there’s room to grow.
So, what are some examples? Where do I look? And how often?
Daily Metrics
Weekly Metrics
Monthly Metrics
The ongoing and consistent tracking of these metrics gives me the insight I need to determine the best use of my time and my team’s time.
Why introduce new revenue or more advanced growth strategies if there are ‘leaks’ in the fundamentals? Often, you don’t need to invest financially to close these revenue ‘leaks’. It’s totally within your control, your time, your focus, training staff, and accountability.
One can and should calculate the financial gain from closing these leaks.
For example, let’s take the simple case of evaluating the metrics of patient communication with your current phone system.
Assumptions:
- Total calls per month = 1,200
- Current answer rate = 80%
- Therefore, calls answered = 80% of 1,200 = 960 patients (240 calls went to voicemail)
- Percent of new patient callers = 10% (1 in every 10 calls is a new patient)
- Therefore, new patients spoken to = 10% of 960 = 96
- Current booking rate = 60%
- Therefore, total new patients booked = 60% of 96 = 58 (so, 38 did not book)
- Average Per Patient Revenue = $500
- Therefore, total new patient revenue per month = $500 x 58 = $29,000
In this case, if you increase the answer rate by 10%...here’s what happens to revenue…
- Total calls answered = 90% of 1,200 = 1,080
- Therefore, new patients spoken to = 10% of 1,080 = 108
- Therefore, total new patients booked = 60% of 108 = 65
- Therefore, total new patient revenue per month = $500 x 65 = $32,500
Overall, you make $3,500 per month MORE (or $42,000 per year) by just answering 90% of the calls instead of 80%.
Now, let’s say you increase the answer rate to 90% AND the booking rate to 70% (from 60%).
- Total calls answered = 90% of 1,200 = 1,080
- Therefore, new patients spoken to = 10% of 1,080 = 108
- Therefore, total new patients booked = 70% of 108 = 76
- Therefore, total new patient revenue per month = $500 x 76 = $38,000
Overall, you make $9,000 per month MORE ($108,000 per year) by answering 90% of the calls and booking 70% of new patient callers.
And that’s just plugging one or two revenue leaks. Imagine if you did the whole list. Here are a few places to start for more opportunities:
- Appointment scheduling: No-shows, wait times
- Billing and insurance: Claim denials, payment errors
- Staff productivity: Utilization rates, turnover
- Marketing effectiveness: ROI on marketing campaigns
Ready to transform your clinic’s financial future? Discover how Juvonno’s clinic management software can help you identify revenue leaks, streamline operations, and drive sustainable growth with powerful data analytics.
Check out Juvonno’s Help Center article on the key reports and analytics tools you have at your fingertips.
