Profitability Checklist: Is Your Practice as Profitable as You Think?
Many podiatrists judge their practice by how busy they are. Profitability, however, depends on much more than patient volume.
Give yourself one point for each “Yes” answer.
☐ I know my average reimbursement by payer—not just my overall collections.
☐ I review my most commonly billed CPT codes at least quarterly.
☐ I know my average revenue per patient visit (PVV).
☐ I know my overhead percentage and monitor it monthly (or at least quarterly).
☐ For multi-provider practices: I compare provider productivity (patients, procedures, and collections) between providers.
☐ I closely track cancellation and no-show rates to identify trends and understand their financial impact.
☐ I review denied claims every month and identify recurring causes.
☐ I know which procedures generate the highest profit—not just the highest reimbursement.
☐ I review supply costs for procedures and look for opportunities to reduce waste.
☐ I know my labor cost as a percentage of collections.
☐ I compare reimbursements between different plans from the same insurance carrier.
☐ I consistently monitor accounts receivable over 90 days and have a plan to reduce it.
☐ I review write-offs to determine whether they are contractual or avoidable.
☐ I use reports from my practice management software to make business decisions—not just to close the month.
☐ I set annual profitability goals and review key performance indicators every month.
Your Score
13–15 Yes: Excellent. Your practice is being managed proactively, not just operated.
9–12 Yes: Good foundation, but there are likely several opportunities to improve profitability without seeing more patients.
5–8 Yes: You’re probably leaving significant revenue on the table. Start by reviewing reimbursements, staffing costs, and billing performance.
0–4 Yes: Your practice may be busy but not optimized for profitability. A detailed financial and operational review could uncover substantial opportunities.
Remember:
Profit isn’t determined by how many patients you see—it’s determined by how well you understand your numbers. The most successful practices review key financial and operational metrics every month and make small, data-driven adjustments before minor issues become major profit drains.