You have to know what to measure to know where you're going.

1. Key Performance Indicators
Steven Sunder, BS
Sunder Vision Solutions

2. Agenda
• Introduction to Key Performance Indicators
(KPIs)
• Selecting Data to Measure KPIs
• KPI Methodology
• Developing a Monthly Trend Report
• Applying KPIs in Your Practice
• Q & A

4. Introduction to KPIs
• You, as the decision maker, need at-a-
glance access to KPIs so you can quickly
assess the health of your practice and
take command when conditions change.

5. Introduction to KPIs
• KPIs reflect your practice’s goals.
• KPIs are definable.
• KPIs are measurable.

6. Selecting Data to Measure KPIs
• What is your professional revenue per
hour?
• How many patients do you see per hour?
• Patient access wait time?
• How many new patients are you seeing?

7. Selecting Data to Measure KPIs
• What is your optical eyewear capture rate?
• What is your average eyewear sale?
• What is your receivable collection rate?
• What is your revenue per square foot?

8. Take Control of Your Practice
• Are you willing to take this opportunity to
take control of your practice or leave it up
to chance?

9. Take Control of Your Practice
“Be first and you will automatically be
different. If you can hang in there and
fight off the imitators, you will be very
successful.”
—Jack Trout

10. Collecting KPI Data
• Total professional fees
• Total optical sales (frames and lenses)
• Total contact lens sales
• Aggregate fees and sales
• Cost of goods sold
• Cost of all other practice operating
expenses
• Accounts receivable
• Office square footage
• Collections

11. Additional KPI Data
• Facility square footage
• Support Staffing Cost
• Physical inventory count (frames and saleable
contact lenses)
• Working days in the month
• Doctor patient contact hours during month
• Aggregate monthly staff hours worked
• Exams performed
• Frames sold
• Established patient exams performed

13. KPI
Methodology
• Questions to ask yourself:
– What professional services do I track?
– What optical services do I track?
– How do I apply this information?

14. Sample KPIs

15. Developing a Trend Report

16. Trend Report

17. Practice Benchmarks Trend Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD Total
Part l: General Practice Statistics
1. Total Gross Charges $582,282 $569,031 $627,595 $621,399 $555,459 $611,478 $578,877 $518,111 $511,359 $424,337 $459,744 $456,615 $6,516,289
2. Total Net Revenue $411,043 $381,214 $452,179 $409,444 $404,320 $405,237 $415,967 $336,413 $354,179 $308,328 $314,570 $315,948 $4,508,843
3. Total Net Collections $379,641 $345,703 $417,546 $372,397 $378,871 $381,327 $394,015 $313,902 $334,631 $288,531 $290,600 $293,639 $4,190,803
4. Total Support Gross Wages $67,522 $64,017 $68,453 $61,206 $67,799 $70,404 $65,041 $55,689 $57,254 $51,695 $53,927 $61,260 $744,266
5. Total Operating Expenses1
$343,431 $345,477 $369,620 $368,306 $342,619 $362,451 $340,706 $315,797 $279,112 $292,294 $289,148 $333,053 $3,982,014
6. Net Operating Income $67,612 $35,736 $82,559 $41,138 $61,701 $42,787 $75,261 $20,616 $75,068 $16,035 $25,422 ($17,105) $526,829
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Healthy Best
Part ll: Operating Ratios YTD Total Range In Class
1. Operating Expense Ratio1
59% 61% 59% 59% 62% 59% 59% 61% 55% 69% 63% 73% 61% 45%-65% 40%
2. Non Physician Payroll Ratio 12% 11% 11% 10% 12% 12% 11% 11% 11% 12% 12% 13% 11% 15%-25% 15%
3. Total Net Collections 92% 91% 92% 91% 94% 94% 95% 93% 94% 94% 92% 93% 93% 90%-98% 99%

18. Practice Benchmarks Trend Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Healthy Best
Part lll: Accounts ReceivableAnalysis @December Range InClass
1. MonthEndA/RBalance $31,402 $35,511 $34,633 $37,048 $25,449 $23,911 $21,952 $22,511 $19,548 $19,797 $23,970 $22,309 $26,503 N/A N/A
2. Days InA/R 13 11 13 11 16 17 19 15 18 16 13 14 # 170 40-60 30
3. DistributionofA/RinDollars % Aging Healthy Best
YTD Bucket Range InClass
a. 0-30 Days $11,688 $17,405 $16,721 $14,827 $13,386 $11,913 $11,024 $11,614 $10,045 $9,442 $13,097 $12,906 $12,839 48% 40%-60% 75%
b. 31-60 Days $3,349 $2,000 $2,596 $3,768 $3,515 $1,702 $2,585 $2,882 $1,952 $3,115 $2,590 $1,809 $2,655 10% 20%-30% 15%
c. 61-90 Days $2,407 $1,210 $1,954 $2,119 $1,679 $2,679 $889 $2,053 $1,853 $1,130 $2,591 $895 $1,788 7% 5%-10% 5%
d. 91-120 Days $1,531 $1,526 $1,105 $1,520 $1,090 $1,592 $1,373 $631 $1,237 $1,572 $1,070 $2,001 $1,354 5% 5%-10% 2%
e. >120 Days $12,427 $13,370 $14,034 $14,812 $5,779 $6,025 $6,081 $5,331 $4,461 $4,538 $4,622 $4,697 $8,015 30% 5%-10% 3%

19. Practice Expense Ratios

20. Support Revenue Ratios

21. Applying KPIs to Your Practice
• Measure
• Monitor
• React
• Plan

22. Steve Sunder can be contacted at:
C: 602.524.1169
E: steve@sundervisionsolutions.com
W: http://sundervisionsolutions.com