#205 Your Practice Can Be Profitable and Still Run Out of Money
A practice hired a provider in January. The hire was right and she was generating revenue from day one. By March the practice was sixty thousand dollars short and could not make payroll, because nobody had modeled what cash looks like in month two when you are carrying a full salary and the claims are still in the pipeline. This episode builds the model that would have caught it, and it is not the binder kind.
In this episode:
• The seven moments when a practice actually needs a financial model
• The six components that matter, and the ones you can skip
• How to calculate net revenue per visit and why everything else depends on it
• The cash flow projection that shows what a profit and loss statement cannot
• Break-even, translated into a daily schedule number
• The five numbers each seat in the practice needs to see