Collecting information on your practice operations can quickly become overwhelming. Key production indicators (KPIs) solve the information overload problem. They are 12 to 15 critical statistics that the practice tracks on a regular basis. KPIs provide a vital snapshot of practice operations that the dentist can review in three to five minutes.
Track what matters most. Too much information is overwhelming. Track KPIs such as the following:
- Production
- Profit
- Overhead
- Collections
- Gross revenue
- No-shows/last-minute cancellations
- Average production per patient
- Number of new patients each month
Don't view analyzing KPIs as just an occasional event. KPIs must be measured and analyzed each week. A quick review should not take more than two to five minutes. Over time, consistent evaluation of KPIs makes it possible for the doctor to rapidly identify performance changes, even minor ones.
Roger P. Levin, DDS, is the chairman and CEO of practice management consulting firm Levin Group.
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