How to Calculate Profit & Loss for your Physical Therapy Practice:

Do you know what your profit or loss is at any given moment during each business day? Some of you may not want to know. You may not want to know the impending doom…LOL! But if you really sit back and think about it; isn’t that one of the most important things about owning a business? If any business owner were to decide to sell, they would HAVE to know the numbers perfectly. By knowing your worth, your value, you debt, is what makes you a better business owner. So why should a physical or occupational therapy practice be any diffenent? Its’ not.

I’ll tell you that for about the first 6-9 months of our practice, we only had a rough estimate of how much money we were making or losing on a daily basis. Looking back, that sounds absolutely rediculous. I have no idea how we managed to make it past that point without knowing. But I wasn’t alone. This seems to be more common practice than not for some strange reason in the medical profession. Practice owners may figure it out on a weekly or monthly basis, but isn’t it too late at that point to make any changes in the process??

Practices that are tracking their daily profit and loss are going to make it further in the long run. Most practices however are doing this on paper or on an excel spreadsheet. After interviewing many physical therapists that are tracking it manually, we’ve learned that it can take upwards of an hour for each day! This is between the receptionist collecting all the data for the day for what patients were seen, and then the own plugging in the salaries and overhead costs. That’s ubsurd! Our time should be better spent on patient care or getting new business. But it’s necessity, so something’s got to give, right?

HENO takes all the numbers for the day and automates it all – profit/loss, cancels/no shows, types of patients seen as far as payors, the productivity of each clinical team member, and how much came in via cash, checks and credit cards. It makes it simple and the best part is that it takes our receptionist 30 seconds!

Check out a demo, and I promise you that you won’t be dissapointed!