Chiropractic Practice Management: How To Increase Your Profitability

Chiropractic Practice Management: How To Increase Your Profitability

*The following is an actual transcript Chiropractic Practice Management: How To Increase Your Profitability. We do our best to make sure the transcript is as accurate as possible, however, it may contain spelling or grammatical errors.*

Chiropractic Practice Management: How To Increase Your Profitability

Hello everybody, and welcome to Thrive in Five. I’m Dr. Dennis Perman, and I’ll be your chiropractic coach for today. Over the last several months, Dr. Hoffman and I have been giving you many examples of how to use the Practice Growth Calculator to be able to figure out where you are in practice, how to get to where you really want to get to in practice, and how to continue along that path of ongoing growth. Well, later on, I’m going to show you a QR code where you can tap into the Practice Growth Calculator for yourself. But for today, we’re going to be talking about how to increase your profitability. That’s something that most doctors want to do, and I certainly have some methodology for you that you’re going to be very happy to hear about.

Let’s talk about Dr. Rob. Dr. Rob works five days a week. He sees about 20 new patients a month. He sees about 200 office visits a week, and makes about $24,000 a month. So let’s take a look at these numbers and figure out what this practice is actually trying to tell us. Well, he sees about 40 people a day, 200 a week times five days, that adds up to about 800 office visits a month. Now, his typical patient, since he sees 20 new patients a month, if he sees 800 visits, you divide the 800 by 20, and you find out that each patient stays about 40 times.

Now we take a look at the amount of money that he collects per office visit. If he collects $24,000 on 800 office visits, he’s collecting $30 a visit. Just for a bit of comparison, when I retired from practice in 1987, I was collecting more than $30 a visit. And that’s 35 years ago. So these other numbers, 20 new patients a month, 40 people a day, 800 people a month, those other numbers are in pretty good alignment. But the Practice Growth Calculator cannot be fooled. It picks out exactly where the weaker area is that we need to pay attention to, in this case, it’s the doctor’s OVA. So if the doctor wants to grow 30%, how would we actually do that? Well, let’s take a look at the next slide.

His 20 new patients a month are absolutely fine. His 800 office visits and his 40 PVA are also absolutely fine. But if we increase his OVA by 30%, so in other words, we went from a 30 OVA to a 40 OVA, well, lo and behold, that takes his case average from 1,200 to 1,600, and he would that 30%. Now, obviously over these last several months, we’ve been picking out different elements of the Practice Growth Calculator that might be the answer to your problem. For some people it’s not enough new patients. For others, it’s not enough visits per patient, the PVA. For others still, it’s not enough dollars per visit, the OVA. And that’s the reason why we’ve been giving you all these examples so that you can see yourself in the Practice Growth Calculator. So when this doctor adds $10 to his OVA, we’re going to talk about how to do that in just a moment, he takes his annual income from 288,000 to 384,000, a $96,000 increase. Well, you know what? That ain’t bad. So let’s take a look at the last slide and figure out exactly how we can do this.

You see, to raise the OVA by $10, he would have to increase fees. He could add or systematize the back end. He could improve collections, or he troubleshoot his policies. But why settle for only a $10 increase. Even at a $40 OVA, that’s very modest for these days. The average doctor at the Masters Circle has much higher OVA than $40. So to go to $50, that increases the case average to $2,000, an increase of $800 per patient. And again, the way to do this is he could increase fees. Now, some people want to do that. Some people do not. If he was collecting $30, we would’ve to look and see, did he have a $30 fee that he was collecting $30? Or does he have a $60 fee that he’s collecting $30?

If it’s a $30 fee, we got to consider increasing the fee. If it’s a $60 fee, then we got to go to the third example and improve collections. But most usually when doctors want to grow their OVA, they look to the back end. They look to the additional services and products that they can provide above and beyond their chiropractic adjustment so that they can have some good services that improve the quality of the patient life and improve the potency of their care, but also add dollars to your OVA.

Now, the last slide I want to show you is how you can get to the Practice Growth Calculator yourself. If you run your phone, your scanner, your camera over this QR code, it will take you directly to the Practice Growth Calculator. And if you do this, if you do it now, while we still can do this, you’ll also receive a free copy of the SuperConference journal, the Practice Unmasking Journal that has eight articles in it that talk about all aspects of practice management and practice growth.

You know, growing a practice is not a mystery. There are certain things you do in order to create it. You optimize your practice by having the right number of new patients come in the right number of visits and pay you the right number of dollars. The problem is, many of us don’t realize what those right parameters are. We have standards in our mind, but we don’t necessarily know what the best way is to do this. That’s where coaching comes in. And the good news is you can get a flavor of the Masters Circle Global Coaching by merely going to the Practice Growth Calculator, filling in out once, it will take you less than two minutes, and for doing so, you’re then entitled to a complimentary visit with either Dr. Hoffman or myself to learn about what the Practice Growth Calculator is trying to tell you.

So I urge you, either hit the code, or you’ve got a link right at the bottom there, that tmc.bz/9po. You can go ahead and you can get to the Practice Growth Calculator either way, but please do it because this is going to help you understand exactly what you need to do in order to create the practice that you really want. And you can do it simply, easily and with great dignity, great ethics, great integrity. This is something that is available to all of the profession for free. Please visit the Practice Growth Calculator, and indeed, tell your friends to do the same thing. It’s for you. It’s my pleasure to serve you in any way possible. It’s Dr. Dennis Perman from the Master Circle Global signing off for Thrive in Five. Have a wonderful week.

 

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