Michael Nicol

Written by Michael Nicol from Physio Business Growth – Michael shares insights on making informed, data-driven decisions in healthcare. Read the full article below.

In business, we constantly make choices – when to hire, when to increase marketing, and when to follow up on a particular patient. Unfortunately, all too often, these decisions are made based on feelings, cash flow pressures, or simply because a contract is up for renewal. To avoid personal bias, these decisions should ideally be at least partially data-driven.

Why Decisions Should Be Data-Led

Clinical Saturation Formula

A clinic may “feel” busy or quiet, but using data such as Clinical Saturation (Number of hours treating patients / number of hours available to see patients) provides a clearer picture.

For example, over a 6/12-week period, this metric gives an accurate reflection of how much space is in the diary. The rule used by Physio Business Growth is that 85%+ for six consecutive weeks signals the need to hire.

Key Performance Indicators (KPIs): Where Do You Start?

Like anything, it’s easy to get bogged down in numbers and fall into the paralysis-by-analysis stage (although this is rare in physio clinics). The key is to break the data into clinical and financial measures. Start small and gradually build confidence and consistency in tracking your numbers.

Clinical Stats:

  • Retention Rate/PVA (Patient Visit Average): Measures the average number of visits for each client per episode.
  • Number of New and Returning Clients: A useful measure of the effectiveness of your internal versus external marketing efforts.
  • Cancellation Rate by Clinician: Tracking cancellations by individual clinicians helps identify potential issues, such as a lack of trust from clients.

Financial Stats:

  • Profit, Profit, Profit: It’s often a ‘bad word’ in physio, but at the end of the day, we’re in business. As the saying goes, ‘revenue is vanity and profit is sanity.’ Profit allows us to invest in staff, facilities, and services.
  • Wages to Revenue Ratio: Always be aware of the total cost of an employee compared to the revenue they generate. Ideally, this should be around 45%.
  • Revenue Month by Month: Physiotherapy is a fluctuating business. The best way to track progress is by comparing your numbers month by month and quarter by quarter against the previous year.

How to Use Technology to Help You

Anyone can pull these numbers from practice management software or Excel spreadsheets. However, if gathering and interpreting data is too difficult, it’s less likely to be done consistently.

The best approach is to use multiple software tools that work seamlessly together. This is where Nookal and Dataplayer come in:

  • Dataplayer provides easy-to-understand visuals of important data, making it quick to compare different timeframes, clinicians, and clinics.
  • Nookal is an easy-to-use practice management software that ensures accurate and efficient data collection.

Together, Dataplayer and Nookal provide the information needed to make well-informed business decisions.

An Example:

Tracking referral sources is essential for understanding where new assessments are coming from, which is particularly useful for targeted marketing campaigns. Word of mouth, especially from friends and family, is one of the most effective ways to bring in new clients.

With Nookal and Dataplayer’s integration, we’re not just monitoring the number of new clients—we’re identifying trends year on year and month on month. This helps us measure client retention and highlight months where extra marketing efforts may be needed.

Dataplayer Interface

How Would I Benefit from a Business Coach?

What Is Business Coaching?

Business coaching involves working one-on-one to develop a clear strategy for achieving both business and personal goals. A coach provides support, guidance, and accountability to ensure you follow through and put that strategy into action.

Why Use a Business Coach?

From working with clients over the years, these are the three main reasons they seek coaching:

  1. Recognising They Don’t Have All the Answers: Business owners realise that while they need to grow, there’s always more to learn. Physiotherapy is complex, and running a successful business involves many moving parts.
  2. Creating a Clear Strategy: A high-performing physiotherapy business has many components, but key factors include:
    • Identifying the biggest opportunities for growth and profitability.
    • Understanding the exact steps needed to move forward.
    • Avoiding distractions or roadblocks.
  3. Speed of Implementation: Success depends on how quickly and effectively a strategy is put into place. A business coach helps with:
    • Speed: Providing proven processes and systems.
    • Avoiding Mistakes: Drawing from experience to prevent common errors.
    • Accountability: Helping business owners stay focused and committed.

The Truth About Coaching

“Learn from the mistakes of others. You can’t live long enough to make them all yourself.” — Eleanor Roosevelt

Two key things to keep in mind:

  • A coach is not a guru. We don’t have all the answers, but two heads are better than one. If we haven’t encountered a situation, one of our past clients probably has.
  • Coaching is not a shortcut. A coach won’t do the work for you, but they can make running your business easier.

One Bonus Tip:

  • Get your numbers in place early – both clinical and financial.
    Knowing your numbers makes planning, development, and growth much easier.

Exclusive Offers

As a Nookal user, you can take advantage of two exclusive offers:

Interested in taking your clinic to the next level?

Contact Michael at Physio Business Growth to discuss your individual business needs:

Contact Ana at Dataplayer for onboarding support:

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