Financial KPIs

Financial KPIs track metrics that directly impact the profitability of your practice. Understanding these core financial metrics and how to calculate them can help you identify staffing needs and make informed decisions.

Revenue per Patient

Revenue per patient measures the average income generated from each patient over a specific period. It's calculated as:

Revenue per Patient = Total Revenue / Number of Active Patients

For example, if your practice generates $500,000 in annual revenue and has 1,000 active patients, your revenue per patient is $500.

Monitoring this metric helps you understand patient value and identify opportunities to increase revenue, such as introducing new services or improving treatment plan acceptance.

Collections Ratio

Collections ratio indicates how effectively you're converting billed production into actual revenue. It's calculated as:

Collections Ratio = (Total Collections / Total Production) × 100%

A collections ratio of 100% means you're collecting all the revenue you're producing. The American Dental Association (ADA) recommends aiming for a 98% collection rate. A lower rate might signal issues with billing processes or the need for improved front office staffing.

Overhead Percentage

Overhead percentage shows the portion of your revenue consumed by operating expenses:

Overhead Percentage = (Total Overhead Expenses / Total Revenue) × 100%

The ADA suggests keeping overhead under 63% of total income. High overhead can erode profit margins and indicate inefficiencies in your practice. Monitoring this metric helps you identify areas where you can reduce costs or improve efficiency.

Profit Margin

Profit margin measures the percentage of revenue that remains after all expenses are paid:

Profit Margin = ((Total Revenue - Total Expenses) / Total Revenue) × 100%

A healthy profit margin ensures the financial sustainability of your practice.

Case Acceptance Rate

Case acceptance rate measures the percentage of presented treatment plans that patients accept:

Case Acceptance Rate = (Number of Accepted Treatment Plans / Number of Presented Treatment Plans) × 100%

According to the ADA, at least 75-80% of your patients should accept your treatment recommendations. A low acceptance rate might indicate issues with patient communication, pricing, or trust. Improving this rate can increase revenue per patient and overall profitability.

Operational KPIs

Operational KPIs reveal insights into your practice's efficiency and productivity. They allow you to optimize scheduling, resource allocation, and overall operations.

Chair Utilization Rate

Chair utilization rate measures how effectively you're using available dental chairs:

Chair Utilization Rate = (Total Patient Chair Time / Total Available Chair Time) × 100%

For instance, if your chairs are available for 160 hours per month and patients occupy them for 120 hours, your chair utilization rate is 75%. A higher rate indicates efficient scheduling, while a lower rate suggests unused capacity. The goal is to optimize chair usage without overbooking, which can impact patient satisfaction.

If your chair utilization rate has been impacted by a staff shortage, you can improve it by using dental staffing solutions like Teero that connect you to quality hygienists in your area. 

Schedule Fill Rate

Schedule fill rate tracks how well you're filling your appointment slots:

Schedule Fill Rate = (Number of Appointments Scheduled / Number of Available Appointment Slots) × 100%

A high fill rate means you're maximizing productivity. A low fill rate might indicate issues with patient retention or ineffective appointment scheduling processes.

Hygienist Production per Hour

This metric measures the revenue generated by hygienists per hour worked:

Hygienist Production per Hour = Total Hygienist Production / Total Hygienist Hours Worked

Monitoring this KPI helps assess hygienist efficiency and identify opportunities for training or process improvements.

Lab Turnaround Time

Lab turnaround time tracks the time between sending work to the lab and receiving completed cases:

Lab Turnaround Time = Date Received from Lab - Date Sent to Lab

Shorter turnaround times mean faster treatment completion and increased patient satisfaction. Monitoring this KPI helps you manage lab relationships and schedule appointments effectively.

Patient-Centered KPIs

Patient-centered KPIs are related to patient acquisition, retention, and satisfaction. These metrics help you understand patient behavior and improve their overall experience.

New Patient Acquisition Rate

How many new patients are coming to your practice? You can calculate it with the following formula:

New Patient Acquisition Rate = (New Patients Acquired / Total Patients at Start of Period) × 100%

The ADA recommends the number of new patients should increase by 10% to 15% annually.

Appointment No-Show Rate

Appointment no-show rate tracks the percentage of scheduled patients who miss appointments:

Appointment No-Show Rate = (Number of No-Shows / Number of Scheduled Appointments) × 100%

A high no-show rate disrupts scheduling and reduces revenue. Implementing reminder systems and flexible scheduling can help reduce no-shows.

Average Appointment Wait Time

Average appointment wait time measures the time patients wait before being seen by a provider:

Average Wait Time = Total Wait Time of All Patients / Number of Patients

Long wait times negatively impact patient satisfaction. Aim to keep average wait times under 10 minutes. Monitoring this KPI helps improve scheduling efficiency and patient experience.

Patient Satisfaction Scores

Patient satisfaction scores gauge how patients perceive their experience at your practice. Collect feedback through surveys using questions rated on a scale (e.g., 1 to 5). Calculate the average score:

Patient Satisfaction Score = (Sum of All Scores / Number of Responses) × 100%

High satisfaction scores indicate strong patient relationships and quality service. Use feedback to identify areas for improvement and maintain high levels of patient care.

Staff Performance KPIs

Tracking staff performance metrics helps you evaluate productivity, identify staffing needs, and ensure your team operates efficiently. Focusing on these metrics allows you to connect to Teero's staffing solutions for optimal results.

Production

Production measures the total value of procedures performed, calculated as:

Production = Number of visits × Production per visit

Average daily production depends on many factors, including the kind of procedures you perform. According to MGE research, a solo doctor makes around $3,700 per day.

Track this metric by provider to identify staffing efficiency and capacity needs.

Training Hours per Employee

Investing in staff development improves skills and productivity. Track the average number of training hours per employee:

Training Hours per Employee = Total Training Hours / Number of Employees

Aim to provide regular training opportunities to keep staff updated on best practices and new technologies. This KPI reflects your commitment to professional development.

Employee Turnover Rate

Employee turnover rate measures how often staff leave your practice within a period:

Employee Turnover Rate = (Number of Employees Who Left / Average Number of Employees) × 100%

High turnover can disrupt operations and increase costs. Aim to keep your turnover rate as low as possible by creating a positive work environment.

Patient-to-Staff Ratio

Patient-to-staff ratio measures the number of active patients per staff member:

Patient-to-Staff Ratio = Number of Active Patients / Number of Staff Members

A balanced ratio ensures staff can provide quality care without being overburdened. Monitoring this KPI helps you determine if you need to adjust staffing levels.

Note that the ADA doesn’t have a recommended dentist-to-patient ratio due to the differences in economic environments across the country.

Clinical KPIs

Clinical KPIs provide insights into the quality and effectiveness of your dental care delivery, helping you maintain high standards and identify improvement opportunities.

Recall Effectiveness

Recall effectiveness evaluates how successfully your practice brings patients back for regular check-ups:

Recall Effectiveness = (Number of Patients Returning for Recall / Number of Patients Due for Recall) × 100%

High effectiveness indicates strong patient communication and engagement, leading to better preventive care and patient retention.

Clinical Outcomes

Clinical outcomes measure the success of treatments from a clinical perspective. This can include metrics such as:

  • Success rates of specific procedures

  • Complication rates

  • Patient-reported outcomes

For example, you might track the success rate of root canal treatments:

Root Canal Success Rate = (Number of Successful Root Canals / Total Root Canals Performed) × 100%

Monitoring clinical outcomes helps identify areas for improvement in treatment protocols.

Marketing KPIs

Marketing KPIs measure the effectiveness of your marketing efforts and help optimize patient acquisition strategies. Tracking these metrics ensures your marketing investments yield the desired results.

Cost per New Patient

Cost per new patient calculates the average marketing expense to acquire one new patient:

Cost per New Patient = Total Marketing Costs / Number of New Patients Acquired

It’s tough to estimate an industry average considering the regional differences, but it’s always a good idea to brainstorm more cost-effective marketing strategies to bring the cost of patient acquisition down.

Referral Rate

Referral rate measures the percentage of new patients who come from referrals:

Referral Rate = (Number of Referred New Patients / Total New Patients) × 100%

A high referral rate indicates strong patient satisfaction and loyalty. Encourage satisfied patients to refer friends and family by implementing patient referral programs.

Online Reviews and Ratings

Online reviews and ratings impact your practice's reputation and can influence potential patients. Monitor the number and quality of reviews on platforms like Google, Yelp, and social media. Aim for an average rating of 4.5 stars or higher.

Website Traffic and Conversions

Website traffic measures the number of visitors to your practice's website. Track metrics such as:

  • Page views

  • Time on site

You can measure these metrics in free tools such as Google Search Console. (Just be aware of HIPAA compliance whenever you’re collecting patient data on your website and sending it to a third-party tool.)

Conversions measure how many website visitors take desired actions, such as booking an appointment or filling out a contact form:

Conversion Rate = (Number of Conversions / Total Website Visitors) × 100%

The higher the conversion rate, the more effective your website is at getting visitors to take the desired action.

How to Implement KPI Tracking in Your Practice

Implementing KPI tracking involves selecting relevant metrics, setting targets, and regularly reviewing their performance. Start by choosing a few key KPIs aligned with your practice's priorities. Use practice management software to track data and generate reports.

Regularly reviewing KPIs helps identify trends and areas for improvement. For example, if the shortage of hygienists is impacting your finances, dental staffing platforms like Teero can help you solve this problem by providing flexible staffing solutions.

By monitoring and acting on KPIs, you can make informed decisions that enhance efficiency, profitability, and patient satisfaction in your dental practice.

Full schedule. Maximum revenue. Every single day.

Full schedule. Maximum revenue. Every single day.

Full schedule. Maximum revenue. Every single day.

Full schedule. Maximum revenue. Every single day.