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Avg Daily Collections Provider

October 17, 2024 7 minutes To Read

Today’s Date: 2024-10-18

Avg Daily Collections Provider

Calculated by dividing the collections posted for selected provider by the number of days worked by the same provider for the given time range. The number of days worked by a provider are calculated by counting the days when any transactions were posted for a provider. We use the procedure date to calculate this number so any corrections shouldn’t affect this number. The number of days can be different than you expect when procedures are either posted intentionally or by mistake under a provider who has not worked on a particular day.

Importance of Avg Daily Collections Provider KPI

The Avg Daily Collections Provider KPI is a cornerstone metric for any dental practice looking to maintain and improve its financial health. This indicator sheds light not only on the revenue effectiveness on a per-provider basis but also offers insights into how efficiently the practice operates. Here’s why this KPI is crucial for your dental office:

  • Revenue Optimization: By knowing the average daily collections per provider, you can identify which providers are generating the most revenue and which ones might need support. This assists in optimizing the schedule of high-performing providers, thereby maximizing revenue potential.
  • Performance Benchmarking: This KPI serves as a benchmark for evaluating the performance of your providers. A consistent avg daily collection can be an indicator of provider efficiency and patient satisfaction.
  • Resource Allocation: Understanding these collections can help in better resource allocation, ensuring that high-grossing providers have the support they need to continue performing well. It can also help in making decisions about hiring additional staff or expanding practice hours.
  • Financial Planning: Regular monitoring allows for more accurate financial forecasting and budgeting. Knowing the average daily collections helps in making informed decisions about investments in new technology, equipment, or marketing efforts.
Avg Daily Collections Provider = Total Collections / Number of Days Worked

Average Daily Collections per Provider

This KPI measures the efficiency and productivity of a dental provider by showing the average amount of money collected per day that the provider works.

KPI Calculation

The “Average Daily Collections per Provider” is calculated in a straightforward way by following these steps:

  • Step 1: Calculate Total Collections – Determine the total amount of money collected for the selected provider.
  • Step 2: Determine Number of Days Worked – Count the days on which any transactions were posted for the provider using the procedure date. This count gives the total number of days the provider is considered to have worked.
  • Step 3: Calculate the Average – Divide the total collections from Step 1 by the number of days worked from Step 2.

Example Calculation:

Let’s go through an example to clarify:

  • Total Collections: Suppose the total collections for Provider A in a given time range is $10,000.
  • Number of Days Worked: Suppose the provider had transactions posted on 20 different days.

Therefore, the Average Daily Collections per Provider would be:

$10,000 / 20 days = $500 per day

Average Daily Collections per Provider

Calculated by dividing the collections posted for selected provider by the number of days worked by the same provider for the given time range. The number of days worked by a provider are calculated by counting the days when any transactions were posted for a provider. We use the procedure date to calculate this number so any corrections shouldn’t affect this number. The number of days can be different than you expect when procedures are either posted intentionally or by mistake under a provider who has not worked on a particular day.

Improving Your Average Daily Collections per Provider

As a dental office, your average daily collections per provider is a critical KPI that significantly impacts your overall financial health. To optimize this metric, here are a few strategic steps you can take:

  • Accurate Tracking of Days Worked: Ensure that the days are accurately reflecting the actual days worked by each provider. This can be achieved by meticulous data entry practices to avoid any accidental postings under a provider who hasn’t worked.
  • Optimize Appointment Schedule: Maximize the productivity of each provider by effectively managing and optimizing their appointment schedule. An optimal schedule ensures that providers have a balanced and manageable workload, leading to higher collections.
  • Fee Schedule Review: Regularly review and, if necessary, update your fee schedules. Making sure that the fees charged for different procedures are competitive yet fair can influence the overall collections.
  • Efficient Billing Procedures: Ensure that your billing procedures are foolproof. Delayed or incorrect billing can affect your collections. Regular training for staff on proper billing and coding practices can be beneficial.
  • Patient Follow-ups: Implement a robust follow-up system for pending payments. Sending timely reminders and following up with insurance companies can significantly reduce outstanding collections.
  • Provider Performance Evaluation: Regularly evaluate each provider’s performance. Identifying and addressing any areas where a provider might be underperforming can lead to improvement in daily collections.

collections posted / number of days worked by provider

How Practice by Numbers Can Help Improve These KPIs

Practice by Numbers offers powerful dental business intelligence software designed to help you monitor and improve your KPIs effectively. Here’s how our tools can assist in optimizing your Average Daily Collections per Provider and other critical metrics:

  • Data Accuracy and Reporting: Our software ensures that all data entries are accurate and up-to-date, which is essential for precise KPI calculations. Automated reporting helps you track your KPIs without manual errors.
  • Visual Analytics: Practice by Numbers provides intuitive dashboards and visual reports, allowing you to easily monitor trends and identify areas needing improvement. This enables faster decision-making and strategic planning.
  • Appointment and Scheduling Optimization: Our system offers intelligent scheduling features that help optimize appointment slots, ensuring that each provider’s schedule is fully utilized, thus increasing daily collections.
  • Comprehensive Billing Management: Practice by Numbers integrates seamlessly with your billing system, ensuring accurate and efficient billing processes. This reduces delays and errors, thus directly improving collections.
  • Performance Benchmarking: Our tools enable you to benchmark provider performance against industry standards and internal goals. This helps in identifying high performers and providers needing additional support.
  • Patient Follow-up and Retention Tools: Automated reminders and follow-ups for pending payments and appointments increase patient retention and reduce outstanding collections.
  • Fee Schedule Optimization: Regular insights on competitive fee schedules help you adjust your pricing strategy to maximize revenue without compromising patient satisfaction.

Practice by Numbers supports your dental practice by providing actionable insights and efficient management tools. This drives your practice towards achieving better financial outcomes and sustained growth.

KPI Statistics for 2024-01-01 to 2024-06-30

Average Daily Collections per Provider showed varied performance across different percentiles:

  • 10th Percentile: $2,903.62
  • 25th Percentile: $4,263.25
  • 50th Percentile (Median): $6,423.86
  • 75th Percentile: $9,500.70
  • 90th Percentile: $13,571.72

Compared to the same period in 2023, there have been changes in the average daily collections:

  • 10th Percentile (Last Year): $3,221.02
  • 25th Percentile (Last Year): $4,588.34
  • 50th Percentile (Last Year): $6,691.19
  • 75th Percentile (Last Year): $9,956.21
  • 90th Percentile (Last Year): $14,306.83

These statistics reflect the overall growth and efficiency of the dental practice. More detailed and per month KPI statistics are available to Practice by Numbers users for deeper insights and strategic decision-making.

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