Are you making data-driven decisions in your healthcare practice – not only for your clients but for revenue growth?
Do you know what the main profit drivers are in your practice?
In the dynamic world of healthcare, data-driven decision-making is all-important. If you know what’s making you money (and what’s not), you can make strategic decisions to improve the profitability of your practice.
But how can you make the most of your data without disappearing down a rabbit hole? Ideally, your practice management software will help you interpret complex data so that you can create an actionable plan to increase revenue.
So, how do you know which data is relevant and how to tap into it?
Let’s take a walk through our step-by-step guide, from identifying key metrics to monitoring them and taking action.
Step 1: Identify Key Metrics & Data Sources
Your first step to make the most of your practice data will be to identify the relevant revenue-related metrics.
Good practice management software will offer robust daily, weekly, and monthly reporting functionalities, which makes identifying key metrics for your business simple.
For example, Power Diary offers 26 different reports, including system reports, financial reports and client reports. With this much data at your fingertips, you can quickly answer questions like “What’s our most popular service?”.
Key revenue-based performance indicators might include the following:
- Total number of appointments booked
- Appointments booked per practitioner
- Total revenue generated
- Revenue by service type
- Revenue generated per practitioner
- Outstanding accounts
Step 2: Understand Trends
Once you’ve identified the metrics you want to track, use your practice management software to make sense of them.
Insights extracted from your practice data can illuminate patterns and trajectories that were previously hidden or unconsidered. These revelations can point to potential areas to finetune that may impact profitability.
Some patterns that’ll directly inform your bottom line include:
- Client booking patterns: What are the most popular times and days for appointments?
- Client retention patterns: Which practitioners retain the most clients? Are your practitioners retaining referrals? Which clients haven’t made future appointments?
- Most profitable services: Which services generate the most revenue for your practice?
- Referral patterns: Which sources haven’t referred in a while?
- Patterns emerging from debt collection: Do specific referral sources send you clients who don’t pay on time?
Step 3: Adjust Your Strategy Based on Emerging Trends
Knowing the revenue-related trends in your healthcare practice is incredibly valuable, but they must inform your business strategy to make a difference.
In essence, data analytics serves as the compass guiding your business journey – it’ll be up to you to course-correct to ensure revenue growth.
Let’s discuss some effective ways to respond to your practice’s trends and close revenue gaps.
1. Streamline Appointment Scheduling
Using data about the most popular appointment days and times, you could adjust your rosters to accommodate more clients in slots when bookings are most likely and avoid potential bottlenecks. Plus, if you offer a client portal on your website, the newly rostered hours will be available for online booking 24/7.
You should also look for patterns related to client retention and total number of appointments booked. If clients are not booking follow-up appointments, consider that by offering online booking, you could send follow-up messages along with a link allowing clients to book and pay for an appointment on the spot.
If data reflects that no-shows impact practice revenue, use your practice management software’s waitlist function to mitigate this. An in-platform waitlist can reduce the impact of no-shows by enabling you to quickly offer waitlist clients open appointments, making scheduling new clients on short notice hassle-free.
2. Implement Automatic Reminders
Evaluate your appointment data further to identify patterns relating to no-shows and cancellations. If you identify gaps, you may choose to implement automatic reminders to help reduce no-shows. With automated email and SMS message reminders for your clients that include cancellation policy details, you can confidently enforce your policy, knowing that your clients have been notified and are aware of the consequences associated with a no-show or late cancellation.
3. Evaluate Your Pricing
Based on the trends that emerge from your data analysis of total revenue generated and the average revenue per client, assess whether it might be time to raise your rates. If you haven’t taken a look at your rates in a while, this could be the right time to do so.
If it’s the right fit for your practice, you could also develop packages to increase revenue from existing clients.
4. Bring Billing Processes Online
Have you taken a good look at your outstanding accounts report recently? If not, you may get a not-so-pleasant surprise when you do. If your outstandings are high, consider this a timely reminder to get on top of your billing. By offering online invoicing and payment, you streamline your debt collection processes, radically reduce billing inefficiencies and make it easier than ever for your clients to settle outstanding bills.
Depending on how your practice operates, you can also implement a requirement for partial or full payment prior to appointments.
5. Address Client Retention with Your Team
Identifying retention problems by evaluating client retention data can be a catalyst for conversation with your team. Try to identify what practitioners with the highest retention rates are doing differently than other practitioners.
There may be good reasons for different retention rates, such as a practitioner going on leave who has been assigned short-term clients so as not to disrupt the client experience. But, if there are no obvious causes, this is an opportunity to work together with practitioners to identify potential issues and develop solutions.
6. Improve Your Relationships with Referrers
Referrers are an integral part of many practices and an excellent way to grow your business, once you have relationships in place.
Power Diary offers 3 different referrer reports: recent referrals, expiring referrals, and inactive referrals, and each presents an opportunity to build a relationship with your referrers.
A report showing recent referrals is useful for knowing who needs to receive referral feedback letters. Your expiring referrals report will let you know which referrers to follow up with to renew a referral.
And don’t forget to check the inactive referrals report. When you know which referrers are no longer sending clients to your practice, you know where to focus your relationship-building efforts in order to bring those referrers onstream again.
Step 4: Monitor Key Metrics
Success in practice isn’t static; it’s dynamic and data-driven.
Being prepared to adapt and evolve your strategy according to your practice data is the essence of a thriving, forward-thinking practice in the healthcare industry.
Once you’ve zeroed in on your key data metrics, identified trends, and adjusted your strategy accordingly, you’ll want to use your practice management software to monitor those metrics long-term.
By monitoring and responding to your data metrics consistently, you’ll ensure that your healthcare practice’s revenue goals are proactively managed and achieved.
Guidelines for effective practice metric monitoring include:
- Set measurable goals.
- Establish agreed-upon benchmarks for tracking progress across various metrics.
- Run detailed analytics reports regularly to track progress. Software like Power Diary allows you to run reports that detail accounts receivables, aged receivables, invoices created, referral trends, marketing campaign logs, recurring appointments, and so much more.
- Review the emerging data and adjust your strategies as the data evolves.
The use of analytics for revenue growth is an essential asset in today’s fast-paced healthcare industry. It offers the key to unlocking significant improvements in operational efficiency, cost reduction and client retention. By leveraging insights drawn from analytics, you can make informed, data-driven decisions that promote your practice’s financial health.
From defining key performance indicators to monitoring your progress and adjusting your strategies based on revenue trends, every step is part of a transformative journey.
But you don’t need to embark on this journey alone. Our powerful software is designed to support and streamline this process, helping you make the most of your data.
Want to unlock your healthcare practice’s true potential? Sign up for a 14 Day Free Trial of Power Diary now – no credit card required!