If you don’t know the score, how do you know if you’re winning?
As most of you have heard or seen, I’m a big sports fan, in particular, a huge football fan and crazy, passionate Chicago Bears fan. For anyone paying a little bit of attention to football over the last few days, you know that the Bears lost a playoff game in total heartbreaking fashion to the Philadelphia Eagles. My dad, sons and I are still reeling from the painful loss.
If you were to look at the statistics of the game, you would have thought that the Bears had easily won. The Bears had more yards than the Eagles. They won the turnover battle (2-0). The historical significance of this is crazy….a home team that wins the turnover margin by two or more in the playoffs has a record is 112-4. The numbers, in this case, lied about the final score.
The same can often be said about the numbers of a podiatry practice. I have seen it many times. Doctors often think they have a healthy practice because they are “busy.” However, the health of a practice is much more complicated than being busy. If the practice isn’t healthy, neither is the patient care over the long term.
In order to evaluate the health of your practice, you need to know what numbers are important. Healthy practices have reports and dashboards that are utilized regularly assessing different aspects of the business. There are basic numbers that should be looked at monthly like total revenue, total expenses, overhead percentage, and profitability. There are many more nuanced numbers that help you understand your business like the cost of patient acquisition, per patient value, new patient value, value of a treatment room, costs of goods and many more. These higher level numbers provide more in-depth analysis on how to drive profitability and ultimately the financial success of the business.
At the FABI 2019 Event, we have a two-hour session on Saturday, March 9 that is titled, “numbers, numbers, numbers.” We will dive into which numbers are important, how to calculate them and how to utilize those numbers to drive your business success. We have touched on these concepts at past FABI Events, and this year we will be going into greater depth as this session always generates so much interest and so many questions. You will be hearing from three successful practices and how numbers are used to generate profitability and better patient care.
If you are reticent to leave your practice for a day or two and lose income, let me do some “numbers, numbers, numbers” calculations for you.
Let’s assume you take a day and a half out of your practice so that you can attend the FABI Event Friday March 8 – Sunday March 10, 2019 in Miami. (the half day is for travel on Thursday March 7)
You typically see 30 patients per day, so you will miss seeing 45 patients.
Your per patient value (PPV) is $125 which is a typical Podiatric average (FABI Faculty Chris Milkie is $175, Matt Dairman is $187, and my PPV is around $400).
So 45 patients x $125 PPV = $5,625 in lost revenue
Now let’s take expenses.
Flight is around $500
Hotel for 3 nights is less than $600
Registration is $1000 (unless you take us up on discount offers)
Miscellaneous is $500
Total expense is $2600
You’re in for a total cost for the FABI Event of $8,225.
What’s your ROI (return on investment)? That’s another really important number to know.
When you go to other podiatry seminars, what is your take away? Do you get information, strategies, mindset and more that will help you increase your revenues, decrease your expenses and explode your profits? All while improving patient care?
We have regularly heard that people who attend the FABI Event increase their profits by $25,000 – $100,000 per year.
That’s a 3x – 10x ROI….in a single year.
That’s pretty amazing and certainly worth the trip to Miami.
Regardless of your plans for March 8-10, 2019, you should be spending time and thoughtfulness creating reporting with important metrics that can help you run a more successful business. If you think you can do it alone, go for it. If you think it would be cool to hear it from other successful business owners and see their strategies for success, join us in Miami March 8-10, 2019….you won’t regret it.
Remember…if you don’t know the score (profitability), how do you know if you’re winning?
Have a great week.
Join us in Miami!
Join us in Miami March 8-10, 2019 so we can share other innovative ways to improve patient care.