Running your own medical practice is incredibly rewarding, but it can also feel overwhelming trying to keep everything on track. You’re not just a physician; you’re a business owner, too.
When it comes to staying profitable, delivering great care, and making sure your doors stay open, a few key metrics—or KPIs—can make all the difference. Here’s a breakdown of the most important KPIs to watch, plus simple ways to start improving them:
Patient Volume & Visit Frequency
If your schedule isn’t full, your revenue suffers. Keeping track of the number of new and returning patients you see helps you plan for staffing and expenses.
How to boost it:
- Offer evening or weekend hours
- Use text and email reminders to cut down on no-shows
- Build referral relationships with local providers
Fun fact: According to Medical Economics, growing patient volume is one of the simplest ways to increase revenue without changing your overhead.
Average Days in Accounts Receivable (A/R)
Nobody likes waiting to get paid. Long A/R cycles can mess up your cash flow. Ideally, less than 15% of your total A/R should be over 90 days old.
How to improve it:
- Send claims promptly
- Train your team on clean coding to avoid denials
- Follow up on unpaid balances before they hit 90 days
Source: MGMA says keeping A/R tight is one of the best indicators of a healthy revenue cycle.
Patient Satisfaction
Happy patients come back, refer their friends, and leave good reviews online, which is huge for practices competing against big hospital systems.
How to improve it:
- Send quick post-visit surveys
- Resolve complaints ASAP
- Train your team to make every patient feel valued
Did you know? AdvisoryBoard.com found a strong link between good patient experiences and higher patient loyalty.
Provider Productivity (RVUs or Visits per Day)
How many patients you see or RVUs you generate each day says a lot about your practice’s efficiency and your bottom line.
How to improve it:
- Delegate tasks like vitals or paperwork
- Streamline your EHR templates
- Set realistic daily visit goals
Note: MGMA recommends comparing your productivity with national benchmarks to see where you stand.
Net Collection Rate
This calculation shows the percentage of charges that are actually collected (i.e. end up in the practice’s bank account) after subtracting out discounts, write-offs, adjustments, etc. Aim for a net collection rate of 95% or higher.
How to improve it:
- Check insurance benefits before visits
- Make collecting copays at check-in standard practice
- Reconcile payments daily to catch errors
Appointment Fill & Cancellation Rates
Empty slots and frequent cancellations waste time and money (not to mention causing frustration for you and your staff).
How to improve it:
- Keep a waitlist to fill last-minute openings
- Introduce a clear cancellation policy
- Offer telehealth as an option for reschedules
Tracking your KPIs isn’t just a numbers game; it helps you maintain a healthy practice, keep your patients happy, and preserve your independence. By staying on top of these key metrics, you can build a thriving practice that allows you to do what you love: caring for your community.
