A key performance indicator (KPI) is a means of measuring the success or overall performance of a business, its employees, or how goals are being achieved within the company. Key performance indicators are metrics that can be used in several different spheres of a physical therapy company, like finances, operations and strategy.
If you’re a physical therapy practice owner, KPIs can be a great tool for you to measure the multiple aspects of your practice that create a well-functioning practice.
What are some key performance indicators that physical therapy clinics can use to measure success?
- Financial metrics — Financial metrics are one common way to measure the success of a business. They’re important because they can help keep a company accountable for the way it handles its finances, and alert a company if it is in need of new financial management methods. Financial metrics most often surround profit margins and revenue income.
- Customer metrics — Some types of key performance indicators can indicate the satisfaction of the patients who frequent a physical therapy practice. Specific types of customer-oriented KPIs include patient retention rates and per-patient efficiency.
- Marketing metrics — Marketing metrics are employed to track the effectiveness of marketing campaigns. This type of key performance indicator would be important for a physical therapy business owner to see if the marketing choices they have made have been conducive to more patient attraction and retention. Marketing metrics most often include methods that measure conversion rates.
Which is most important?
It’s important to understand that there actually isn’t a single key performance metric that is the most important for a physical therapy practice owner. It is imperative, however, to collect as many of these metrics as you can for a more rounded understanding of how successfully your practice is performing. If you only took into account one metric and neglected another, this wouldn’t give you a full or accurate view of how your clinic is operating, which is why it’s important to use several different types of KPIs.
Alliance PTP can help your physical therapy clinic choose the best approach for measuring key performance indicators
Alliance Physical Therapy Partners firmly believes that partnership means creating something that is greater than the sum of its parts. Alliance PTP is proud to bring together physical therapy clinics around the nation to help people get the kind of treatment they’re looking for and then exceed their expectations. Want to learn more about joining Alliance PTP’s growing list of partners? You can read more on our page for practice owners here.
Contact our team today for more information about how we can help your practice or to find out how you can join our partnership in care.