Measuring Practice Performance & Setting Goals for Growth
CareCredit’s free interactive Performance Calculators can help you evaluate your practice data and determine potential outcomes of setting specific target goals.
Enter your current performance numbers and target goals into the white data fields to calculate potential revenue per month.
Click for detailed instructions.
Step 1: Determine your hearing test conversion rate by dividing the number of patients treated with a new hearing device by the number of patients who received a hearing test and qualified for device treatment (sample: 46%).
Step 2: Set a realistic target goal for conversions (sample: 60%).
Step 3: Calculate the target number of patients to be treated with a new device by multiplying the number of hearing tests performed by the new target conversion rate (sample: 28 tests x 60% = 17 patients). Then estimate the number of hearing devices to be dispensed by applying your current ratio of binaural to monaural fittings to the target number of patients (sample: 13 patients treated and 24 devices sold = 85% of patients receive binaural fittings. 17 target patients x 85% = 14 binaural patients +3 monaural for a total of 31 devices to dispense).
Step 4: Project incremental revenue based on increasing conversions. Multiply the incremental number of devices to be dispensed (sample: 31-24 = 7 devices) by your average revenue per device (sample: 7 x $2,370 = $16,590)
Step 5: Project revenue by increasing your average revenue per device (sample: increase $2,370 by 10% to $2,607). Then multiply this new figure by the current number of dispensed hearing devices (sample: $2,607 x 24 = $62,568 total; $5,688 incremental) or by your new target volume (sample: $2,607 x 31 = $80,817 total; $23,937 incremental).
Note: For optimal display, enter data into calculator as whole numbers.
For illustrative purposes only. Data represents observed industry averages, however, figures may vary between individual practices. Sample conversion rate averages are supported by published articles written by Dr. Gyl Kasewurm, Au.D.1 and Brian Taylor, Au.D.2 Average number of devices dispensed per month cited by HR Hearing Aid Dispenser Survey3 and Sikka Software4. Sample price per device and binaural fitting percentage supported by Hearing Tracker5 and HR Hearing Aid Dispenser Survey3
Aiming to reach a specific revenue goal per month? Calculate the number of hearing devices that would need to be dispensed to reach your desired revenue. Goals may be set as a percentage or incremental dollar amount.
Click for detailed instructions.
Step 1: Enter current practice performance data including the number of tests conducted, patients treated and devices dispensed. Also add the current gross revenue generated by hearing device sales.
Step 2: Set a target increase for hearing device revenue (sample: 20%) and calculate potential incremental revenue (sample: $56,880 x 20% = $11,376). If preferred, you can set the desired incremental revenue amount directly and the percent increase will be displayed ($10,000 incremental revenue desired = 18% increase). When setting a revenue goal, it is important to consider how many tests are being performed, how many patients are walking out without a hearing device and the opportunity for growth.
Step 3: Determine how many additional hearing devices will need to be dispensed to meet the revenue goal. Divide the incremental revenue desired by the average revenue per device (sample: $11,376 / $2,370 = 4.8, which will require 5 additional devices).
Step 4: If you increase the average revenue per device (sample: 10%), the number of devices sold required to reach the revenue goal will decrease.
Note: For optimal display, enter data into calculator as whole numbers.
For illustrative purposes only. Data represents observed industry averages, however, figures may vary between individual practices. Average number of devices dispensed per month cited by HR Hearing Aid Dispenser Survey3 and Sikka Software4. Sample price per device and binaural fitting percentage supported by Hearing Tracker5 and HR Hearing Aid Dispenser Survey.3
Break It Down for Patients
Illustrating total out-of-pocket cost as an estimated monthly payment using financing options with the CareCredit credit card may help increase both your conversion rate and average ticket sale. In fact, did you know that $3,291 is the average out-of-pocket spend (after discounts and insurance) for a patient opening a CareCredit account in a hearing health practice? 6
Contact your CareCredit Practice Development Team at 800.859.9975 (press 1, then 6) to request a custom Performance Review. Discover how your practice has been utilizing patient financing, ways to integrate it more effectively and the new contactless tools available to help further streamline the application and transaction processes.
1. Kasewurm, G. (2019). The number one key to success. DrGyl.com.
2.Taylor, B. (2016). Using key performance indicators to do more with less in your practice. Seminars in Hearing. Thieme Medical Publisher.
3. Strom, K. (2014). HR 2013 Hearing aid dispenser survey: Dispensing in the age of internet and big box retailers. Hearing Review.
4. Boechler, A. (2015). Sales trends in hearing care practices. Hearing Review.
5. Bailey, A. (2021). Hearing aid price tracker: How much do hearing aids cost in 2021? Hearing Tracker.
6.Average 2020 1st ticket sale in independent hearing health practices that accept CareCredit.
This content is subject to change without notice and offered for informational use only. You are urged to consult with your individual business, financial, legal, tax and/or other advisors with respect to any information presented. Synchrony and any of its affiliates, including CareCredit, (collectively, "Synchrony") make no representations or warranties regarding this content and accept no liability for any loss or harm arising from the use of the information provided. Your receipt of this material constitutes your acceptance of these terms and conditions.
