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One of my favorite questions to ask a prospective associate is where they see themselves in 3-5 years. I usually qualify he answer i am looking for by asking them to expand on their vision of what their practice looks like. Almost without exception the biggest unknown is how many patients they are seeing in one week and how much money they think that might equate to. And if they were to know how many patients they wanted to see… how many new patients they would need to see each week to achieve that goal is an even bigger mystery.

Fortunately there is a very simple formula that helps us understand where our focus should be.


NP = New Patients – # of new patients in one month
PVA = Patient Visit Average – the average times a patients will see you
OVA = Office Visit Average – The average cost of a visit in your office

The result of this equation equals the amount of revenue expected each month.

20NP X 15PVA X 45OVA = $13,500
25NP X 20PVA X 45OVA = $22,500
35NP X 25PVA X 45OVA = $39,375
50NP X 40PVA X 45OVA = $90,000 (Million Dollar Practice)

If you look at these examples closely you will notice that small changes in each category make for huge changes in overall revenue.

Using these numbers we can get the pulse on the practice and it give us the information we need to grow the practice. In fact every single thing it takes to grow a practice will fall into one of those categories. Your practice is all about attracting new patients, keeping them healthy for as long as you can and charging them for services/products you provide. That’s it!

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Where Should You Put Your Money in 2009, January 4th, 2009 on 8:55 pm

[…] only ONE way to grow ANY business.  It all comes down to this equation, which I have talked about previously.  Your business is always a product of the number of new clients/customers times the number of […]