You’re a rockstar therapist. Your knack for treating patients is uncanny, and your bedside manner keeps them coming back for more. But is that enough to run a successful clinic? Unfortunately, no. You see, being a fantastic therapist is only half the battle of running a fantastic practice. The rest is pure business sense. The good news is, this stuff is easy to learn; it’s all about taking baseline measurements, making small improvements, and tracking progress. To get you started, here are eight metrics critical to your practice:

The Profitable PT: 5 Simple Strategies for Private Practice Success - Regular BannerThe Profitable PT: 5 Simple Strategies for Private Practice Success - Small Banner

1. Profit Per Visit

This is how much money you earn—on average—for each patient visit after deducting all costs associated with doing business. To get this number, take a look at the average reimbursement dollar amount you’re collecting from each insurance carrier or patient per patient visit, and then average them together. (Note: It’s a good idea to get an average for each insurance carrier so you have a general idea of who’s paying what. This can help if you need to renegotiate your fee schedules.) This total is your net revenue per visit.

Next, consider everything that goes into treating your patients and running your business each day—including rent, technology systems, payroll, supplies, and insurance. Divide this number by the number of patients you typically see during the course of each day. This is your net cost per visit. Take your net cost per visit and subtract it from your net revenue per visit. If you end up with a positive number, you’re turning a profit. If not, you’re losing money, and it’s time to explore ways to cut back your spending or generate some additional income.

2. Net Revenue Per Month

This metric refers to the amount you collected for a given month, rather than the amount you billed. It helps you assess the health of your billing processes and the growth trajectory of your business. Once you’ve determined your baseline, you can use it to set business goals. And if an unexpected rise or fall occurs, you can perform data analysis—using a tool such as WebPT Analytics—to identify the cause.

3. Payer Revenue Per Patient

This figure represents the average amount of reimbursement per patient visit you’re getting from each carrier. In other words, if you want to know which payers offer the highest reimbursement rates, this is a stat you’ll want to pay close attention to. To start, identify the payers that make up the largest portion of your clinic’s revenue (usually, about five to ten payers); then, figure out how much each payer reimburses, on average, per patient. To calculate this, figure out the total revenue generated by each payer and divide it by the number of patients with that insurance. This metric can help you maximize revenue from your most-frequently tapped payers, and you can weigh this revenue stat against your cost metrics to determine which contracts are giving you the biggest payout for your time.

4. Revenue Per Therapist

This metric tells you how much revenue, on average, each therapist generates for your business. Remember: If a therapist sees fewer patients than others, it doesn’t necessarily mean he or she is pulling in less revenue. That’s why it’s important for practice owners to go beyond the number of patients each provider sees and account for the average amount of revenue each of them generates per month, per day, or per visit. With this figure, owners can assess whether therapists are effectively managing their time as well as their billing.

5. Net Promoter Score®

The Net Promoter Score® survey is a proven method of determining how happy customers are with a particular company or service by dividing a client base into three categories (Promoters, Passives, and Detractors) based on their answers to this question: On a scale of one to ten, how likely are you to recommend [company or service] to a friend or colleague?

This metric is incredibly important in industries like rehab therapy, where word-of-mouth marketing is a main source of new business generation. Here’s a breakdown of the three NPS categories:

  • Promoters (scores 9–10) are loyal enthusiasts who will continue seeking your services and referring others, thus helping you grow your business.
  • Passives (scores 7–8) are satisfied with your services but not necessarily enthusiastic or loyal. Therefore, they are susceptible to competitive offerings.
  • Detractors (scores 0–6) are unhappy customers who may be willing to speak out about their negative experiences, thus damaging your brand and detracting from your growth.

To calculate your NPS, subtract the percent of customers who are Detractors from the percent of customers who are Promoters. Before you start asking customers where they fall on the scale all willy nilly, though, it’s important to have a plan. And as you develop that plan, bear in mind these five important steps to Net Promoter Score implementation: align, aim, ask, analyze, and act. For more information on successful NPS use, check out this source or this WebPT Blog post.

6. Billing Metrics

There are several sub-metrics that influence the overall health of your billing cycle, and each one is an important measure of how efficient your billing process is. After all, waiting months for reimbursement—or never receiving it at all—is a clear indicator that your practice is not running as smoothly as it could be. Plus, according to an article on financial metrics written for physicians (but quite applicable to therapists), “the sooner you get paid, the more that payment is worth.” Here are a few metrics this article recommends:

  • Days in Receivable Outstanding (a.k.a. Daily Sales Outstanding or DSO): The average amount of time it takes for your practice to collect payment (whether it be from a patient or an insurance carrier). To calculate, take your total current receivables and divide it by the average daily charge amount (your total gross charges for the past year divided by 365 days). Goal: Fewer than 35 days.
  • Percentage of Receivables Over 120 Days: This assesses your practice’s ability to collect on a timely basis. To calculate, take the total receivables over 120 days due and divide that number by your total receivables. Goal: Less than 10%.
  • Net Collection Rate: This shows how effective your practice is at collecting reimbursements in general. To calculate, divide your payments by your charges for a selected time period (this article suggests six months), and then multiply this number by 100. Goal: At least 95%.
  • Denial Rate: The percentage of claims your payers deny. To calculate, divide the dollar value of your denied claims by the total dollar amount of claims you submit for a given period (this article suggests three months). Goal: Less than 10%.

7. Marketing and Sales Metrics

While billing metrics are important, you simply can’t afford to dismiss your marketing numbers. After all, if your marketing strategies aren’t effective, you could be throwing a lot of that hard-earned billing revenue right out the window. (Using a patient relationship management [PRM] software like WebPT Reach can take a lot of the guesswork out of employing a marketing campaign that packs a punch—as well as tracking its performance.) So, to ensure your marketing dollars are well spent—and that your sales strategies hit the mark—keep an eye on these key indicators:

  • Customer Acquisition Cost (CAC): This refers to the amount of money it costs to acquire a new patient. To calculate, take the amount you spent on marketing and sales over a particular time frame and divide it by the number of new patients you generated within that period. Ideally, this number should be as low as possible. This can help you assess the effectiveness of a specific marketing campaign or sales effort.
  • Vacancy Rate: Your vacancy rate is the percentage of unbooked time on your therapists’ calendars. Take the number of hours not booked and divide that total by the number of total bookable hours. Then, multiply that number by 100. If your vacancy rate is too high, focus on reducing cancellations and no-shows, minimizing padding between appointments, maximizing calendar scheduling, and pre-booking appointments.
  • Conversion Rate: This metric refers to the percentage of prospective patients who convert to customers as the result of a particular effort or campaign. For example, if you want to know how many new patients book an appointment using a special offer, take the number of new patients who provided the offer code over the phone divided by the number of phone calls you receive from prospects, and multiply the resulting number by 100. You can track your overall conversion rate or narrow your perspective to assess the conversion performance of a particular task or campaign. The latter will help you better understand the effectiveness of your efforts.

8. Employee Satisfaction

In the timeless words of J.W. Marriott, “Take care of your employees, and they’ll take care of your customers.” There are plenty of ways to gauge employee satisfaction, whether it be by formal survey or informal discussion. The key is simply to listen and, according to Marriott, “Treat your employees the way you would like to be treated—provide them every avenue to success. Get their confidence and respect. Have them like and be interested in their job.” It’s no surprise that regardless of industry, happy employees can make a world of difference in a business’s success. And that goes for every single employee in your practice—not just your therapists. After all, it’s your front office staff who give your patients their first impression of your clinic.


There you have it: eight metrics critical to your practice. Of course, there are always more metrics to look at. What metrics do you pay the most attention to? What’s worked in your clinic—and what hasn’t? Tell us in the comments below.

  • articleMar 14, 2013 | 4 min. read

    Get Your Life Back: Billing Best Practices for Rehab Therapists, Part 3

    Billing is one of the most important aspects of running a rehab therapy clinic, aside from patient care. But it can also be one of the most challenging, especially if you’re working with a billing process that doesn’t suit your clinic. The right billing method should streamline your workflow, increase your profitability, and free up some much needed bandwidth. Just think, what could you do with some extra time. With that in mind, we’re going to devote the next …

  • 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 …

  • 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 …

  • When Patients Can't Pay: The How and Why of Financing Programs Image

    articleMar 13, 2019 | 5 min. read

    When Patients Can't Pay: The How and Why of Financing Programs

    Most patients— especially those with whom your practice has a good rapport —want to pay their bills. Unfortunately, with the rise of high-deductible healthcare plans , patients are now responsible for a larger portion of their healthcare bills (in addition to insurance plan premiums). As a result, many well-intentioned people are simply unable to cover the cost of the care they need. This problem is exacerbated for specialities like rehab therapy, because patients typically need to attend …

  • Clear Course for Cash: 5 Simple Ways to Optimize Your PT Billing Workflow Image

    webinarJul 6, 2015

    Clear Course for Cash: 5 Simple Ways to Optimize Your PT Billing Workflow

    Is your current billing workflow flooding your clinic with claim delays, rejections, and/or underpayments? Don’t try to bail yourself out with a sieve. Instead, stop taking on water entirely by patching the holes in your billing processes. But how, you ask? Never fear; we have the answers you need to shore up your ship—for good. Tune in to this month’s webinar, where hosts Heidi Jannenga and Charlotte Bohnett will show you how to set your billing workflow …

  • Collections Letter Templates Image

    downloadDec 22, 2016

    Collections Letter Templates

    Turn on any mobster film, and you’ll quickly understand the importance of paying back any owed debts. Likewise, rehab therapy patients with overdue accounts need to eventually pay up; after all, your business depends on your success in collecting those funds. Plus, if these issues fester with enough patients—and for extended time periods—you run the risk of closing your doors for good. So how do you navigate the tightrope of writing an urgent collections letters that's stern, …

  • 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 …

  • Founder Letter: 3 Ways Your Practice is Losing Money Image

    articleMay 5, 2016 | 7 min. read

    Founder Letter: 3 Ways Your Practice is Losing Money

    Much like the patients you treat, your practice can appear healthy on the outside despite significant internal issues. And when those issues are money-related, the consequences can be deadly. If your practice already is in the red, you know you’ve got some pretty serious cash flow problems. But even if you’re in the black every month, you may still be washing dollars down the drain. While there are myriad ways your practice might inadvertently be losing revenue, …

  • Creating the Perfect PT Billing Workflow Image

    articleJul 14, 2015 | 7 min. read

    Creating the Perfect PT Billing Workflow

    In an ideal world, patients would know their benefits like the back of their hands, we’d have a global payer list, and every claim would be accepted on the first try. But the world is not a perfect place, and there’s only so much you can control. Still, you can do your darndest to get close to the perfect billing workflow. Perfect—or near-perfect—billing begins way before you even create the claim. So, let’s start at the very …

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