---
title: Critical Financial Numbers You Must Know to Improve Patient Retention
description: Maximize your office profitability by knowing your numbers, from ROI to patient retention. Get insights on key financial figures and strategies for growth.
---

[Blog | Clarity Technologies](https://blog.clarityperformance.com)

# [Critical Financial Numbers You Must Know to Improve Patient Retention](https://blog.clarityperformance.com/critical-financial-numbers-you-must-know)

 Written by [Clarity Technologies](https://blog.clarityperformance.com/author/apx-platform) | May 15, 2020 4:00:00 PM

In order to maximize the profitability and success of your office, you need to take an accurate and realistic snapshot of where you are by the numbers.

- Do you know your return on investment for every procedure and treatment you offer?
- What percent of patient leads do you retain?

Patient retention is directly linked to how well your front office staff listens, engages, and responds. In order to become a top performing practice, every working part of your office—the staff, systems, processes, and protocols—must be performing at optimal speed. Be diligent and organized in your record-keeping. Take a quarterly snapshot of your office. If you know where you are, you can make a sustainable plan for future optimization and growth.

Here are the key financial numbers you need to know:

## Budget

- **Start-up costs** – Property, building, equipment, technology, staff and marketing all go into start-up costs.
- **Payroll** – When your business is off the ground, payroll makes up a large part of your bottom line. Know how much you pay your personnel, in wages, taxes/insurance and bonuses throughout the year.
- **Equipment** – This includes initial cost, maintenance and materials required to run, update and optimize equipment.
- **Marketing** – Any expense targeted towards attracting new patients falls into this category, from pamphlets to website development and networking events.

## ROI = (Gain – Cost) / Cost

- **Procedures** – Know how much every procedure costs you to perform, including supplies, time and personnel involved. Your potential gain per procedure is based on these expenses.
- **Technology** – Know how much a piece of new equipment costs to acquire and maintain. You’ll need to include maintenance and supply costs in your calculations of ROI for every piece of equipment in your office.
- **Marketing** – Knowing your ROI on marketing strategies allows you to quantitatively measure how successful a specific marketing tactic is. Know how your patients found your office and why they return—online marketing, networking at the right events, etc. [Read more about how to calculate your marketing ROI in this article from Forbes](https://www.forbes.com/sites/forbesinsights/2015/07/29/the-right-way-to-calculate-marketing-roi/#73e04b78470d).
- **Website position** – Know the numbers behind your website—how many people visit the site per day, what page they go to and stay on, what your bounce rate is, and modify from there.

## Rates

- **Conversion/Close rate** – How many prospective patients do you “land”? How many are retained as long-term patients?
- **No show/cancellation rate** – On average, how many patients make an appointment and don’t show? Or cancel in advance?
- **New patient rate** – The number of new patients you bring in per month, year.

## Room Revenue Assumptions

- **Number of rooms **– Total number of procedure rooms
- **Hours of operation** – How many days are you open?
- **Average treatment price** – Taking an average of all procedures offered, what is your average price?
- **Average length of procedure** – On average, how long do your procedures take? This includes operating preparation.
- **Treatments per day **– How many treatments do you complete per day? Are any days busier than others?
- **Revenue/hour **– Based on the numbers above, what is your average revenue per hour?

## Goals

- **New patients** – Set a goal for the number of new patients retained per quarter. Using the LAER model I developed, you can train your staff to engage, respond to, and retain patients.
- **Revenue** – Based on where you are, what is your projected revenue? Set your revenue goals and make the necessary changes (processes, protocols, staff) to get there.
- **Revenue/hour** – To reach your revenue goals, how much do you need to generate per hour? The average room should do between $600-$1000 per hour.
- **Price strategy (vs. competitors)** – Based on your current and desired revenue, and keeping competitor pricing in mind, develop an informed and realistic price strategy.

[View full post](https://blog.clarityperformance.com/critical-financial-numbers-you-must-know)

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