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What is the break even number of patients you need to see every week? Before you know that you have to know two numbers -
1) the average amount of revenue collected per patient in your practice and
2) the overhead costs of running your practice every week (on average), including paying yourself, contributing to your IRA or 401K, and putting money away for taxes.
Take 2 and divide it by 1 to get your break even number of patients every week. Every service you provide over break even is profit for your practice. Your profitability level dictates the resale value of your practice, according to the pople who appraise practices for resale.
Focus on how to increase the resale value of your practice. If you want to be really successful focus on how to build patient relationships for life, because patient satisfaction levels correlate directly to practice profitability.
David Zahaluk, MD is a practice optimization expert and the author of The Ultimate Practice Building Book. His firm, Ultimate Practice Builder, takes physicians to the top 10% of their specialty – in income, time off and quality indicators - within 3 years… guaranteed. Learn more at www.UltimatePracticeBuilder.com.
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- Planning for Success in 2011! (Part 2 – Areas of Practice Improvement) (blairwithpattersondental.wordpress.com)
- How to Make Your Practice More Profitable in 2011 (dentalheroes.com)
- The Most Profitable Company in the World (fool.com)
- Tax Preparation Checklist (turbotax.intuit.com)
- Profit Margin vs. Markup (markwinstein.com)
Tags: Business, Dentistry, Health, Health care, Healthcare, Medicine, Patient, United States
