Fee growth is important and it’s only natural to get excited when you see your patient fee turnover increase from year to year. But profit is what creates value in your Practice. If I had to choose between a Practice turning over $5M with 5% profit and a Practice turning over $2M with 20% profit I know which one I’d prefer.
So don’t get too distracted by the top line of the profit and loss statement. Look at how your Practice is performing and get an understanding of what drives your Practices’ profit. By establishing the profit contribution of each part of the Practice you will be able to identify what areas need attention. You might be surprised at what part of your Practice is making the most profit.
Tip: Tear your eyes away from patient fee growth for a moment and break down what really matters – your profit.