The Data-Driven Doc's Guide to Crushing Six-Figure Months (And Beyond!)

Are you a doctor or practice owner dreaming of hitting consistent six-figure months? You're not alone! But while most practices focus on working harder, a select few have unlocked the secret to working smarter – and that secret is data.

In this blog post, I'm going to reveal the proven five-step process I've used to help hundreds of practices explode their revenue, break through glass ceilings, and reach a level of success they never thought possible.

Buckle up, Doc, because we're about to dive deep into data‐driven strategies that will transform your practice from struggling to thriving.

Step 1: Know Your Worth – Calculate Your Average Care Plan Value (ACPV)

The first step to reaching any financial goal is to understand your starting point. In the world of data‐driven practices, we start with one crucial number: your Average Care Plan Value (ACPV). This represents the average revenue you generate from each new patient who accepts a care plan.

Here's how to calculate it:

1. Average Monthly Collections: What's your typical monthly revenue?

2. Cash Collection Percentage: What percentage of your collections is cash-based (vs. insurance)?

3. Number of Care Plan Starts: How many patients started a new care plan in the last month?

The Formula:

(Average Monthly Collections x Cash Collection Percentage) / Number of Care Plan Starts = ACPV

Example:

Let's say your average monthly collections are $60,000, and 80% of that is cash:

($60,000 x 0.8) = $48,000

Now, let's say you had 18 patients start care plans last month:

$48,000 / 18 = $2,660

This means, in this example, your ACPV is $2,660. In other words, each new patient who commits to your care plan brings in an average of $2,660.

Understanding your ACPV is essential because it lays the foundation for all future financial planning. It allows you to see the true value of each new patient and make strategic decisions about marketing, staffing, and service offerings.

Step 2: Track Your Spending – Determine Your New Patient Acquisition Cost (NPAC)

Now that you know the value of a new patient, it's time to figure out how much it costs you to acquire one. This is your New Patient Acquisition Cost (NPAC), and it encompasses all the expenses associated with getting a new patient in the door.

To calculate your NPAC, consider these factors:

• Marketing Labor: The salaries, wages, and benefits paid to your marketing team or any staff involved in marketing activities.

• Ad Spend: The cost of running paid advertising campaigns (e.g., Facebook ads, Google ads, print advertising).

The Formula:

(Marketing Labor + Ad Spend) / Total Completed New Patients = NPAC

Example:

Let's say your marketing labor costs for the month are $1,500 and your ad spend is $3,000:

($1,500 + $3,000) = $4,500

If you acquired 36 new patients that month:

$4,500 / 36 = $125

Your NPAC is $125. That means, on average, it costs you $125 to acquire a new patient.

By tracking your NPAC, you gain valuable insights into your marketing ROI. You can identify which marketing channels are most cost-effective and optimize your strategies to reduce your acquisition costs.

Step 3: Measure Your Success – Calculate Your Start Rate (KPI)

Your Start Rate, also known as your Key Performance Indicator (KPI), is the percentage of new patients who actually commit to your recommended care plan. This number is crucial for gauging the effectiveness of your patient education and case acceptance processes.

The Formula:

(Number of Care Plan Starts / Total Completed New Patients) x 100 = Start Rate

Example:

Using the numbers from our previous examples, we had 18 care plan starts and 36 completed new patients:

(18 / 36) x 100 = 50%

Your start rate is 50%.

Aim for a high start rate, ideally above 70%. A lower start rate signals potential areas for improvement in your communication, patient education materials, or financial presentation.

Step 4: Identify the Gap – Where Are You Now vs. Where You Want to Be?

Now that you've calculated your ACPV, NPAC, and Start Rate, it's time to analyze the gap between your current performance and your six-figure month goal.

Let's say your goal is to collect $100,000 in a month. Based on your current ACPV of $2,660 and a 50% start rate, you'd need to attract approximately 75 new patients:

($100,000 / $2,660) / 0.5 = 75 new patients

With your current NPAC of $125, acquiring 75 new patients would cost $9,375:

75 x $125 = $9,375

This analysis reveals a few key insights:

• Marketing Spend: You might need to increase your marketing budget to attract more new patients.

• Start Rate: Even with a higher number of new patients, a 50% start rate might not be enough to reach your goal.

• ACPV: Increasing your ACPV could significantly reduce the number of new patients needed to reach your goal.

Step 5: Leverage Profit Levers – Work Smarter, Not Harder

The real magic of a data-driven practice lies in identifying and adjusting your profit levers – those key metrics that have the biggest impact on your bottom line. By strategically tweaking these levers, you can significantly increase your revenue without needing to work harder or burn yourself out.

Here are the three profit levers we've been working with:

1. NPAC: Reduce your new patient acquisition cost by optimizing your marketing efforts. This might involve:

   • Leveraging organic marketing strategies like internal referrals and social media engagement.

   • Refining your paid advertising campaigns to target more qualified leads.

   • Building relationships with referral sources in your community.

2. ACPV: Increase your average care plan value by focusing on attracting and treating patients with complex cases. This might involve:

   • Building expertise in specific health conditions.

   • Developing comprehensive care plans that address the underlying causes of those conditions.

   • Positioning yourself as an authority in your niche through content marketing, speaking engagements, or community outreach.

3. Start Rate: Increase your start rate by improving your case acceptance systems. This might involve:

   • Enhancing your patient education materials to clearly communicate the value of your services.

   • Refining your financial presentation to address patients' concerns and make care plans accessible.

   • Training your team on effective communication and case presentation techniques.

Back to Our Example:

Let's say you successfully reduced your NPAC to $80 by implementing a robust internal referral program and optimizing your online advertising. You also increased your ACPV to $4,000 by specializing in neuropathy treatment and developing comprehensive care plans for those patients.

Now, with the same $4,500 marketing budget, you can attract 56 new patients instead of 36. And if your start rate increases to 75%, you'll be collecting $168,000 a month! That's more than triple your initial $50,000 goal!

The Power of Data-Driven Practice

Becoming a data-driven doc doesn't mean drowning in spreadsheets. It means using data strategically to understand your practice's strengths and weaknesses, make informed decisions, and achieve consistent, sustainable growth.

By implementing this five-step process and mastering your profit levers, you can:

• Break Through Financial Ceilings: Consistently hit six-figure months and even surpass them.

• Reduce Workload and Stress: Work smarter, not harder, and achieve greater success with less effort.

• Build a high-performing team: Attract and retain top talent, delegate effectively, and create a positive work environment.

• Make a Bigger Impact: Reach more patients who need your services and improve their lives through comprehensive care.

Take the Next Step: Join the Data-Driven Practice Revolution

Ready to unlock the power of data in your practice? Join our free Facebook group, The Data Driven Practice, and connect with a community of like-minded doctors who are passionate about data-driven growth. We'll share exclusive resources, training, and support to help you implement these strategies and achieve the success you deserve.

Click here to join the group:https://www.facebook.com/groups/turnyourdataintodollars