Case study / Practice finance
Collections nearly doubled. The practice moved into profit.
A general practice had the demand, but no clear view of whether growth was paying for itself. Monthly reporting and recurring financial reviews put capacity decisions in context.
These are real results from specific practices over the periods shown. Every practice is different, and these aren’t a prediction of what yours will do. Anonymized practice comparisons supplied by the owner. Figures compare January through September 2024 with the same months in 2026. Operating income is after cost of services and operating expenses, before owner-related and non-operating items. These outcomes are not a forecast or guarantee for another practice.
The challenge
New patients were arriving and collections were climbing, but the owner could not tell whether the added volume was paying for itself. Decisions about another assistant, more chair time, or an extra day were being made on instinct rather than against what the practice was collecting. The practice had finished the earlier period at a loss.
The approach
Give growth something to be measured against.
The work was a recurring monthly process: close the books, put costs beside collections, and review the decisions with the owner.
Close the books every month
Issue a full financial package on time, with each expense line expressed as a share of collections. The added volume can then be measured against the cost of carrying it.
Put expense lines in context
Review supplies, laboratory costs, front-office wages, provider compensation, and occupancy against benchmarks appropriate to the practice's size and specialty.
Keep a standing owner review
Walk through the month, identify what moved, and decide what to do before the next close. Capacity decisions use the practice's own numbers instead of a rule of thumb.
The outcome
Volume went up. The cost of carrying it went down.
Collections increased from $668,994 to $1,258,499, about 88%, while operating income moved from a $97,238 loss to a $160,011 profit. The practice carried more volume through its existing facility, front desk, and supply chain. The owner now has a monthly view of whether growth is paying for itself before making the next capacity decision.
- Monthly close, full financial package, and a standing owner review
- Every expense line reported as a share of collections
- Benchmark scorecard by practice size and specialty
- Supplies: 10.0% → 6.3% of collections
- Front-office wages: 10.7% → 6.8%
- Laboratory: 8.7% → 3.9%
- Rent: 8.2% → 4.3%
- Provider compensation: 27.9% → 21.8%
A next question
Put your own practice in context.
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