Chiropractic Practice Management- Two Different Practices, Same Income

Chiropractic Practice Management- Two Different Practices, Same Income

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Chiropractic Practice Management- Two Different Practices, Same Income

Hello, everybody, and welcome to Thrive In Five. I’m Dr. Dennis Perman and I’ll be your chiropractic coach for today. Today’s subject matter is called Two Different Practices, Same Income. Our contention is that the way you show up in practice is going to be the predominant influence on your practice itself. And I have two illustrations, two doctors that have gotten to the very same outcome two completely different ways. So let’s take a look at the first slide and talk about Dr. Laurie. Now, Dr. Laurie works three days a week. She starts six new patients per month, so that’s something like one and a half per week. She sees 90 office visits per week, so she sees about 30 patients a day, and she collects about $10,000 for her monthly income. Now, she desires to grow her practice by 50%, so let’s take a look at the next slide.

You see, in figuring out how she could increase her practice by 50%, we have to take a look at the averages. We have to take a look at the way her practice actually fits together. So if she sees 360 office visits a month, that would be something like 30 a day, times 12 days, then she sees 90 people a week. Now, if we look at her PVA on six new patients, 360 visits a month over six new patients a month means that her average patient stays about 60 times. That’s pretty good, but we also see, if we compute her OVA, in other words, we figure out $10,000 over 360 office visits, she’s actually collecting $28 per visit. You see, if she wants to grow 50%, there’s a variety of ways she could do it, but there’s one glaring weaker area here that would make it easier for her to do so. So let’s take a look at the next slide.

You see, she could increase her new patients from six to nine, and that would increase her practice by 50%. She could increase her PVA by 30 visits, from 60 to 90, and that would increase her by 50%. But it’s clear that the place among these numbers that needs the most attention is her OVA, the amount of money that she collects per visit. Only collecting $28 per visit, she could easily increase her income from 28 a visit to 42 a visit, and that would increase her practice by 50%. Now, let’s take a look at another example of another doctor making $10,000 a month and see how her practice is different. Now, this is Dr. Carla. Dr. Carla works four days a week as compared to three. She sees eight new patients a month compared to six. But she sees 30 visits a week, in other words, 120 office visits a month, to get to her $10,000. So let’s go ahead and take a look at the next slide.

And we can see that she wants to grow 50% while she’s at seven or eight visits a day. She could increase that bit by 50% and she would increase our practice by 50%. We also take a look at her visits that a typical patient stays, 120 divided by eight would be 15 visits the patient stays, and that’s pretty glaring. But she makes $83 a visit. Now, if you look at this, Dr. Laurie, an average patient stayed 60 times instead of 15, but she only collected $28 a visit. Whereas Dr. Carla, her patients pay her 83 bucks a visit, but they only stay 15 times. So you can see, if we could take these two practices and put them together, that would be a home run practice. But you see, this is the very point. Carla, in order for her to increase her practice by 50%, she probably wouldn’t necessarily want to increase her OVA by 50%. it’s already 83 bucks, she would have to go to 125. Or she could increase her office visits per month, but how does she do that?

Well, she can increase new patients from eight to 12, and she could surely do that. But the glaring piece here is that her PVA at 15, if she could only increase it to 22.5, she increases her practice by 50%. Now, from these very brief examples, I hope you’re getting the idea that there’s more than one way to get to your goal. But also, there typically is one way that is glaringly obvious that you could dramatically improve your practice if you only put energy and time into that particular aspect. For Dr. Laurie, it’s learning to charge more effectively for his services. For Dr. Carla, it was getting people to stick around longer than 15 visits. Now, each practice is different and there may be a perfectly good reason why Dr. Laurie wants her OVA at 28, or why Dr. Carla wants her PVA at 15. That may be their practice model, and they are entitled to do that.

But that’s the beauty of the Practice Growth Calculator. By understanding how your statistics fit together, you can make some decisions about where your energy time and resources are best invested in order to make the growth that you want. Now, each individual doctor has an individual fingerprint. Just like an individual snowflake, everybody is completely different, and that’s why our identity-based approach is so powerful. If you want to find out more, all you’d have to do is, if you’ve already filled out the Practice Growth Calculator, then you can just contact us, Dennis@TheMastersCircle.net, or you can go to the website. You’ll be able to find us through that. Or you can call us at (800) 451-4514, and you can get in touch with us. Now, if you’ve not yet filled out the Practice Growth Calculator, well, what are you waiting for?

This tells you so much about your practice. If you’re on Facebook, you can type “calculator” into the comments area and you’ll get back a link. Otherwise, you can just copy the link that’s at the bottom of this screen, and you can go ahead and fill out the Practice Growth Calculator and learn all about how your practice statistics fit together like Dr. Laurie and Dr. Carla did. Listen, this is a winnable game, but you have to play well. It’s my pleasure to help you in every way possible, but you have to engage. Give me a call, send me an email. Let me help you figure out where you can improve your practice by 20%, 30%, 40%, 50% or more. Those people are waiting for you to serve them, and you’re waiting to be able to reap the rewards of a more successful practice. Thank you for dialing into Thrive In Five: Chiropractic Practice Management- Two Different Practices, Same Income. This is Dr. Dennis Perman signing off for today.

 

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