So you got a patient communication tool. Congratulations! (Doubly if it’s 4PatientCare. Woot!) You’re on your way to maximizing office efficiency, growing your practice, and increasing revenue! How exciting is that?!

excited-gif-2015

Super exciting.

A month later, you log onto your dashboard to find out how it’s going and BAM! According to the automated ROI Calculator, you’ve made a million gazillion bejamins!!!!

raining money

But wait… then why can’t you afford your Porsche yet? This seems fishy…

Well, here’s the less exciting truth: ROI Calculators are just estimates based on the information your patient communication tool is able to pull from your data. And unfortunately, many of the solutions on the market give you very inflated results to make themselves look good (I pinky promise we don’t). Even at 4PatientCare, as hard as we try, can’t give you exact results (yet).

So how are you supposed to know if your system is paying off? You can do it yourself!

It’s really quite simple. Set up the spreadsheet one time, and then all you have to do is input the data and the math gets done for you! If you’re not good with spreadsheets, ask someone to build it for you. Most offices will have at least one excel wiz hiding somewhere.

tumblr_mha5atbhMY1rrhzmso1_500

Now that we know our path, let’s get down to specifics. What exactly are you measuring?

 

Key Metrics:

  1. Number of Appts Made
    1. This number will most likely be on your patient communication tool’s dashboard. Copy and paste. Check.
  2. Capture Rate = Number of Appts Kept/Number of Appts Made
    1. Just subtract the number of cancellations and no-shows you had in the given time period, then divide it by the metric above.
  3. Gross Revenue Per Exam
    1. Average of the total revenue you get from each exam. You might have to hit the books to get the most accurate number.
  4. Net Income % = (Gross Revenue Per Exam – Exam Cost) / Gross Revenue Per Exam
    1. Subtract how much each exam costs you from your total revenue, then divide it by the total revenue.

 

Now that you have these key metrics, time to find out how much moolah is actually pouring in. Basically, let’s find out if you’re getting a Porsche or Honda?

 

Key Formulas:

  1. Number of Appts Made X Capture Rate (%) = Estimated Captured Patients
  2. Estimated Captured Patients X Gross Revenue Per Exam = Estimated Gross Revenue
  3. Estimated Gross Revenue X Net Income % = Estimated Net Revenue
  4. (Estimated Net Revenue – Service Cost) / Service Cost = ROI
    1. The Service Cost is how much you’re paying for your patient communication tool.

 

Easy peasy, am I right?

giphy

Okay, let’s do an example. For our key metrics we’ll use the AOA National Averages.

 

National Averages (AOA):

  1. Capture Rate = 62%
  2. Gross Revenue Per Exam = $306
  3. Net Income = 30%

 

Let’s say we generated 48 appointments this month through 4PatientCare, at $249/month for 1 doctor.

 

Example:

Key Formulas:

  1. 48 X 62% = 29.76 estimated captured patients
  2. 29.76 X $306 = $9,106.56 estimated gross revenue
  3. $9,106.56 X 30% = $2,731.97 estimated net revenue
  4. ($2,731.97 – $249) / $249 = 997.18%

 

HOLY GUACAMOLE, BATMAN!

For every $1 Dr. Hypothetical spent, she got almost $1000 back! And this is just for recalls… Don’t even get me started on the rest of the services.

 

tumblr_n306j4Tpbv1rnxn7co1_500

We know what the Doc is getting herself for Christmas.

So there you have it, folks. A straightforward, no bull spit way to calculate the ROI of your patient communication tool. After you’re done, compare it to your dashboard. If it’s close enough, cool! You don’t have to calculate it yourself every month. If it’s a biiiiig difference, contact your provider to see if there are any adjustments they can make to your dashboard (Hint: 4PC has a few tricks up our sleeves).