Keep a Monthly Practice Report Card

Hopefully you’ve set goals designed to achieve practice growth and greater profitability in 2014.  Monitor your progress with a monthly practice report card.  A simple practice report card that puts information from your practice management software reports and your profit and loss statements all in one place will help you track the performance of your practice.  Key areas to monitor include:  revenue; cost of goods sold (inventory expense) as a percentage of your revenue (20-22% is desired); support staffing costs as a percentage of your revenue (20-22% is desired); new clients; and your practice ATC (average transaction charge) and/or the ATC of each of your doctors if yours is a multi-doctor practice.  In addition, look at the percentage of the revenue you derive from each of the following service categories:  dental care; laboratory services; diagnostic imaging and surgical services.  It is fairly simple to create your own “report card” on an Excel spreadsheet.  In the numbered vertical column, list each of the above performance indicators.  On the horizontal, lettered line at the top, create boxes for each month so you can report last years’ data and then add new data for each month going forward in 2014.  Creating a column for year over year variance in each indicator is helpful as well.  If you set up your own report card and enter the data every month you can determine if you are meeting your goals and, if not, create timely strategies to achieve your desired results.