The phrase “revenue metrics” might conjure up images of highrise boardrooms, laser pointers, and Powerpoint slideshows with graphs galore. But these financial data points aren’t just for corporate bigwigs; every business person—including physical therapy private practice owners—should not only know what these figures are, but also pay attention to them. While there’s probably no need for you to run out and buy a laser pointer (unless you really want to—I mean, they are pretty darn cool), there are a few revenue metrics you should keep a pulse on from month to month. Here are some of the most important ones:

1. Net revenue per month

According to this Becker’s Healthcare article, many professionals in the healthcare sector make the mistake of tracking what they bill, rather than what they actually collect. But it’s important that you capture the actual dollar amount that comes back to you. That way, you can use the number as a baseline for assessing your billing practices and the overall growth of your business. If you see any significant changes in this number, you’ll want to dive further into your data to figure out what caused the shift so you can respond appropriately.

2. Net revenue per visit

As WebPT writer Erica Cohen explains in this blog post, you can calculate your clinic’s net revenue per visit by figuring out the average reimbursement dollar amount you’re collecting from each insurance carrier or patient per patient visit. Then, average them all together. On a side note, Cohen points out that it's “a good idea to get an average per insurance carrier so you have a general idea of who’s paying what. This can help if you need to renegotiate your fee schedules.” Once you know your net revenue per visit, you can subtract your net cost per visit to determine your net profit per visit—which tells you whether your clinic is in the black (i.e., making money) or in the red (i.e., operating at a loss).

3. Top payers and payer revenue per patient

This is actually a twofer: first, you should identify the payers that make up the largest percentage of your clinic’s revenue (at least your top five—preferably your top ten). Make sure you thoroughly understand their rates, claim processing details, and special policies. Then, as Geoff Elledge writes in this blog post, “take a good, hard look at your various contracts and reimbursements by insurance.” In this case, you should look at all of the insurances you contract with, not just your top payers. Specifically, figure out the average amount of reimbursement per patient visit that each carrier provides and weigh that number against your costs. If you’re not making money on a per-patient basis, then, as Elledge suggests, “it may be time to consider non-participating.”

4. Revenue per square foot

This number—which you can calculate by dividing your total annual revenue by your clinic’s square footage—tells you how efficiently you are using your clinic’s space. A low figure could mean that you have too much real estate, whereas a high figure might be a sign that it’s time to upsize. According to a study cited in this article from Advance Healthcare Network, the median annual income per square foot reported by participating physical therapy clinic owners was $203, with values ranging “from a low of $61 to a high of $550.”

5. Revenue per therapist

In measuring therapist productivity, it’s important to look beyond how many patients each therapist sees each day. For a true measure of productivity, you must consider the average amount of revenue each therapist is generating—per month, per day, or even per visit. That way, you can ensure your therapists are not only managing their time effectively, but also billing appropriately for the services they provide.


Do you track any of these revenue metrics in your clinic? How do you use them to maximize efficiency? Share your thoughts in the comment section below.

The PT Patient’s Guide to Understanding Insurance - Regular BannerThe PT Patient’s Guide to Understanding Insurance - Small Banner
  • The Financial Metrics that Matter Most to Therapy Private Practices Image

    articleApr 27, 2017 | 6 min. read

    The Financial Metrics that Matter Most to Therapy Private Practices

    According to Pink Floyd, money is a “gas.” While the surface level interpretation of that lyric may be that money is fun and entertaining, the word “gas” seems deliberate here. After all, money is fuel. We as a society run on it, and yet, so many of us—including rehab therapy professionals—manage it poorly. The trick to better financial management is knowing what to actually manage—or more specifically, what to track, monitor, and act upon. With that in …

  • Suppressing Sticker Shock: How to Handle Your Patients’ High-Deductible Health Plans Image

    webinarFeb 23, 2017

    Suppressing Sticker Shock: How to Handle Your Patients’ High-Deductible Health Plans

    Copayments, coinsurances, unresolved balances—oh my! Any one of these can cause headaches for healthcare providers, but as healthcare reform efforts shift more and more financial burden to insurance beneficiaries, today’s practitioners are increasingly facing all three. And these challenges are not only hurting their patient acquisition and retention rates, but also their bottom lines. Tired of spending time verifying benefits only to lose those patients to copay sticker shock? Stuck in a constant cycle of pursuing past-due …

  • Common Questions from Our Patient Sticker Shock Webinar Image

    articleMar 31, 2017 | 33 min. read

    Common Questions from Our Patient Sticker Shock Webinar

    From copays and deductibles to payer contracts and benefits verification, understanding all the nuances of third-party insurances is tough enough for healthcare providers—let alone their patients. In WebPT’s most recent webinar— Suppressing Sticker Shock: How to Handle Your Patients’ High-Deductible Health Plans —co-hosts Heidi Jannenga, PT, DPT, ATC/L, the cofounder and president of WebPT, and WebPT CEO Nancy Ham provided a lot of great advice on how to have productive conversations about healthcare costs with your patients—without …

  • What's the Right Payer Mix for Your Practice? Image

    articleJul 17, 2018 | 6 min. read

    What's the Right Payer Mix for Your Practice?

    Insurance payments for healthcare services have been declining for a while now , which means providers in all disciplines are looking for ways to optimize their payer mix in order to maximize their revenue. If you haven’t yet calculated the cost of providing your services—and compared that number to the payments you’re receiving to ensure you’re actually making enough money to not only cover those costs, but also turn a profit—then you should. But the question remains: …

  • Live from the Direct Access Front Lines: The Story of Your Front Office Image

    articleOct 16, 2014 | 6 min. read

    Live from the Direct Access Front Lines: The Story of Your Front Office

    A self-referred patient walks into a PT clinic. Is this the start of a joke or a story with a happy ending? Well, that’s up to you. Your direct access marketing efforts will inspire patients to pick up the phone and dial your clinic. But then what? Your front office team is your direct access front line, and if they’re not prepared to interact with self-referred patients (i.e., those with no referral from another healthcare provider), then …

  • Common Questions from Our Cash-Based Physical Therapy Webinar Image

    articleAug 30, 2017 | 19 min. read

    Common Questions from Our Cash-Based Physical Therapy Webinar

    Earlier this week, WebPT’s president and co-founder, Dr. Heidi Jannenga, PT, DPT, ATC/L, teamed up with cash-based physical therapy guru Dr. Jarod Carter, PT, DPT, MTC, to host a webinar covering all things cash pay —from insurance contracting considerations and Medicare rules to self-referral marketing and service pricing. Thousands of rehab therapy professionals registered to attend, which means we received a ton of questions—so many, in fact, that there was no way we could answer all of …

  • Down with Denials! 5 Claim Fixes to Make Sure Your PT Clinic Gets Paid Image

    webinarApr 19, 2017

    Down with Denials! 5 Claim Fixes to Make Sure Your PT Clinic Gets Paid

    One denied claim might not sound off your billing alarm bells—but in reality, it should. That’s because—as with faulty plumbing—one leak often indicates a much larger issue. And all too often, rehab therapy practices fail to act quickly enough—and soon find themselves wading in a flood of lost revenue. But there are simple, proven, and affordable ways to not only plug your billing holes, but also reinforce your whole system so you’re less likely to bust a …

  • What to Look for in a PT Biller Image

    articleJul 28, 2015 | 4 min. read

    What to Look for in a PT Biller

    In the words of American rock legend Tom Petty, “Good love is hard to find.” While I agree wholeheartedly with Mr. Petty’s wisdom, I think some rehab therapy practice owners might say good employees are even harder to find. And that certainly applies in the billing department. After all, your clinic’s billing operation is crucial to its financial well-being. One bad hire could mean the difference between your clinic achieving private practice rockstardom and hitting rock bottom. …

  • 4 Keys to Keeping a Steady Cash Flow Image

    articleMay 18, 2016 | 5 min. read

    4 Keys to Keeping a Steady Cash Flow

    As a private practice clinic owner, you’re probably familiar with the cold sweat-inducing struggle to keep a steady cash flow. Claims management muck-ups, inefficient processes, staff issues, and lack of insight into your clinic’s financial health can leave you feeling like you’re riding a revenue rollercoaster. So, whether you’re trying to maximize reimbursements , combat employee theft , or optimize patient payments , these four keys to maintaining a steady cash flow will help you even out …

Achieve greatness in practice with the ultimate EMR for PTs, OTs, and SLPs.