If you are just getting started, what are the top 5 or 10 things to measure?
It’s really not that difficult to prepare your own monthly monitors to track the key statistics of your office so you can watch out for trends, both positive and negative. I know some offices do it weekly, I just caution them that trends in such a short period of time can be misleading and difficult to draw any real conclusions from.
On the financial performance side of things, on a monthly or quarterly basis:
1. Gross production, adjustments & collections by provider-(do this monthly)
2. Month end aged A/R balances
3. Hygiene gross production vs. hygeine compensation
4. Percentage of staff compensation to revenue
5. Percentage of dental supplies and lab to revenue
6. Percentage of total overhead to revenue (excl depreciation & interest expense for new practices)
7. Percentage of actual collections to adjusted prod (your collection percentage)
8. Percentage of adjusted production to gross production (or percentage of production adjustments to gross production)
9. Ratio of doctor’s production to hygiene production
10. Monthly net cash flow