How Often Should ODs Compare Practice Benchmarks?

I have a question regarding your percentage guidelines for practice overhead expenses.

 

I am in my second year of running my own practice and for the year collected gross revenues are up 3.5%. Our first quarter we were up over 30%, however the second and third quarter we were down about 21-22% on each of them. I am hoping for a positive 4th quarter.

 

I take pride in staying very close to those numbers on my practice budget. However, when the gross is down on a month to month basis, the percentage for items such as staff expense are much higher than normal. Should I just look at things quarterly instead and not fret about this?

 

Thanks a lot,

Dr. Todd

 

 

Congratulations on being in private practice. I am glad to hear that you are using my benchmarks to manage your practice overhead. As any good manager knows, whatever you measure will improve.

 

Your question is a good one and I agree with your point. Because gross revenues can vary widely on a month to month basis in an optometric practice, it makes more sense to base your comparisons on a quarterly basis.

 

Of course, once you get a few months into the calendar year, just do your comparisons on a year to date basis.

 

Best wishes for continued success,

 

Jerry Hayes, OD

 

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