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We hear it all the time: “My practice is doing great, we saw a 30% increase in revenue over last year,” or “My provider is performing well, and they continue to increase in overall revenue month-to-month.” When our practice consultants respond with, “Wow, that’s great, but how is your profit margin year over year?” OR “Wow, that’s amazing you have a provider reaching their revenue goals, but how much better is his/her profit margin month-over-month? Do they have a healthy service mix?“, we quickly learn these revenue metrics don’t always paint an accurate picture of practice financial health. Often practices and business owners fail to understand the importance of measuring their financial success based on other factors like profit vs. just on revenue. During this webinar, you’ll learn about real examples of practices who were only measuring their revenue, and what consequences they experienced by NOT monitoring other important financial metrics. For example, practices will likely see increases in revenue if another provider or new device is added, but:

• What if that device has a high cost of consumables, and your provider is discounting to gain more patients or perform more treatments?
• What if the procedures performed by the provider are mostly high COGS procedures, such as injectables, and they have a high commission structure?

That increase in revenue can quickly go into red if set pricing isn’t honored after the COGS and COL (Cost of Labor) is factored in. In fact, your “profit” may not even be enough to cover overhead costs.