6 Key Performance Indicators for Your Occupational Medicine Practice

No matter how busy your occupational medicine practice is, you know there is always room for improvement, but knowing what those items are and how to evaluate them can be challenging. Performance tracking isn’t only for stocks and Olympic athletes; regardless of size, every business can measure and adjust its methods to improve its practice for its clients and employees. Knowing what to measure is the first step. As Peter Drucker has said, “If you can’t measure it, you can’t improve it.”

Revenue and Billing Metrics

1. Revenue per Client

Not surprisingly, this is a critical key performance indicator (KPI) for assessing the financial viability of the services offered. Using this metric can assist a practice in determining the market rate for services and predicting future revenue based on past data. 

However, overemphasizing this indicator can potentially result in revenue fluctuations, which can be influenced by factors such as the economy or seasonality. An excessive focus on this metric can steer the practice towards quantity over quality, potentially compromising client satisfaction.

The industry-wide goals for occupational therapy can vary widely, but current data suggests a range of $500 to $1500 of revenue per client. 

To calculate revenue per client, use the formula: Revenue per Client = Total Revenue/Number of Clients.

Tips to improve this metric:

• Inform clients of additional services offered by your practice
• Focus marketing on clients needing more specialized services

2. Cost per Acquisition

The marketing and occupational costs of attracting new clients comprise the cost per acquisition (CPA), our second major KPI. Knowing your current CPA allows your practice to assess the effectiveness of your marketing. Understanding the cost of getting new clients aids in budgeting for this item and pinpoints which resources are most valuable and yield the highest return.

This metric should be monitored over the long term, as too much focus on short-term costs may hinder client relationship building. Not to mention, it can fluctuate based on how many new clients your practice is adding. Another factor complicating its use is the variability in marketing campaigns, whose costs vary widely.

A benefit of using CPA is the motivation for encouraging referrals from the existing client base, as these clients are often acquired at lower costs.

The typical range for a practice’s CPA is $150 to $500, but this can depend on several factors, such as location and the range of services offered.

Calculating the CPA:  CPA = Total Marketing Costs/Number of New Clients Acquired

Tips to improve this metric:

• Focus on marketing performance and identify the best channels for reaching new clients
• Encourage patient referrals

Patient Engagement Indicators

3. Client Satisfaction

The name says it all – it reflects the degree to which clients are satisfied with the practice. Several factors make up this overall score, including therapy experience, staff professionalism, communication, and the success of the treatment.

This score can pinpoint areas of improvement, further improving client satisfaction and leading to increased referrals and retention. The drawback to this metric is that many impressions clients may have are highly subjective and may not fully represent the total score. It also requires continual updating and the involvement of all staff in soliciting feedback.

In occupational therapy, client satisfaction scores typically range from 80% to 90%. Those with scores above 90% are considered excellent.

To calculate this score: Client Satisfaction Score = (Number of Satisfied Reponses/Total Responses) x 100

Tips to improve this metric:

• Collect feedback after every session
• Use client suggestions to demonstrate your attentiveness to their needs

4. Client Retention Rate

As the name suggests, this measures the number of clients who return for services over a specific time, assessing loyalty and overall satisfaction.

When used effectively, the client retention rate can also be used to monitor client satisfaction with various practice segments. As mentioned above, long-term clients can serve as excellent referrals, lowering costs for new client acquisition. 

The normal range for client retention in occupational medicine is between 60 and 80%, although a rate above 70% is considered exceptional. 

To calculate: Client Retention Rate = (Number of Clients at End of Period – New Clients during Period)/Number of Clients at Start of Period x 100

Tips to improve this metric:

• Communicate regularly with clients and gather feedback
• Offer educational resources outside of regular appointments

Resource Utilization and Productivity Stats

5. Clinician Utilization

Measuring the percentage of time clinicians spend providing direct patient care versus their total working hours can help determine the practice’s efficiency and productivity.

Following this score can help identify areas for improvement in scheduling and managing resources more effectively. If done appropriately, it can help optimize workloads, improve job satisfaction, and reduce burnout. On the other hand, relying too much on this can encourage some to overwork, increasing fatigue and decreasing employee satisfaction. 

Utilization rates typically range from 75% to 85%. As referenced above, aiming higher than 85% can lead to employee burnout; however, scores below 70% suggest possible scheduling inefficiencies.

Calculating this measure: Clinician Utilization Rate = (Total Hours of Direct Client Care/Total Available Hours) x 100

Tips to improve this metric:

• Prioritize high-demand slots
• Encourage telemedicine when feasible, which can increase appointment availability

6. Appointment Slot Use

This metric helps your practice understand which sessions your clients are using. In short, it measures how effectively slots are being filled and assists in resource utilization. This KPI shows which slots are underutilized and aids in planning and scheduling. Ideally, matching provider availability with client preferences will improve workforce management. This does not indicate the quality of care, only the percentage of slots used. High occupancy can lead to burnout, so this metric needs to be used with others to assess the practice’s success fully.

The average appointment slot use rate ranges from 75% to 85%. Rates below this may indicate the need for scheduling adjustments, much like clinician utilization rates.

Calculating this: Occupancy Rate = (Total Number of Scheduled Sessions/Total Available Sessions) x 100

Tips to improve this metric:

• Analyze peak therapy times and availability and adjust the schedule
• Target new clients via marketing campaigns

How Do You Measure Up?

This list is not exhaustive; there are other parameters to consider, such as client referral rates, average session time use, and, importantly, treatment outcomes. The overall point we’re trying to underscore is to assess KPIs from the three main areas: employee engagement, customer satisfaction, and cash flow. These three areas will help you understand what you need to know about your organization’s overall performance. As with all numbers, measuring and using the information for improvement is essential – this will set your practice apart from others. As Mark Twain once said, “Most people use statistics the way a drunkard uses a lamp post, more for support than illumination.” Fully embracing and utilizing KPIs like these will help illuminate the steps your occupational medicine practice should take to run at its best.