Transcription
Hey guys, it's April 19, 2022. I always like to use this time to update my financials and my benchmarks to see what others are doing. Since I don't have access to compare my private practice financial performance to other private practices, the next best best thing is what you see on the screen behind me, which is US Physical Therapy. So I want you to see the process of how to create your own benchmarks, and then you can use this for yourself as an internal tool to assess your business's performance.
I'm on the home page of US Physical Therapy; I'm going to come across to investor relations, and I'm going to scroll down to SEC filings and annual reports. I'm going to actually go to quarterly reports, and let's see what we've got. We've got a 2021 Q3 10Q, so this is the most recent quarterly report they have available on the website. I'm going to scroll down, and let's take a look at some of the financials they have available.
So right off the start, you know, a lot of this stuff isn't applicable to us, but what we're looking for is this right here. So we're looking at the three months ending September 30th, 2021, compared to September 30th, 2020, and then, of course, they have the nine months for the calendar year. We're looking at net patient revenue, and so what I like to do is I'm going to copy that; I'm going to come over here, and I'm just going to paste it into a cell on a Google sheet. And then I'm going to flip back over; I'm going to go ahead; I can grab the financial numbers. I'm not going to—well, I guess I can—I'll grab the 2020 numbers also.
And so up here, I'm going to say year 2021, year 2020. And even though it's not the full year, it's the quarter; it's okay. Normally I can highlight all of this stuff, copy and paste it over, but for some reason, it's not letting me do that. So instead, what I'm going to do is I'm going to grab the specific headlines that I'm most interested in. So I'll grab salaries and related costs; I'll grab rent supplies because ultimately I'm looking at kind of, um, corporate office cost; I'm looking for percentages. And then what we'll do is we'll grab some of these numbers. So copy that, drop it in here; I'm going to expand this; let's copy this. These numbers are in thousands, so you know, keep that in mind. Okay, let's do the previous year numbers, which that's putting us right into kind of, you know, COVID season. Come on, there we go. Okay, so I'm going to put a little gap there.
Let's take a look at some of these numbers. So this is net patient revenue. When we look at their financials, they also have other revenue; I'm not going to include other revenue; I just want net patient revenue, and I want to know salaries as a percentage of net patient revenue. So I take the total number for salaries, divide it by net patient revenue, and I turn this into a percentage. And so salaries equate to 62 percent of net patient revenue. I can tell you when I was looking at these financials back in like the early 2000s, this would have been just around 50 or under 50 percent. So a 12-inc—well, it's more than an increase, but a major increase in, um, salaries and related costs. And then I'll do the same thing for that. So we're looking at 21, um, for rent, supplies, contract labor. If I just do a quick total of these two numbers, 84 is going to cover those main basic costs. Then we've got corporate costs, so we'll take that, divided by that, and that's about 11. Now, for most of you guys, corporate costs is going into your pocket as the owners, um, but these are some, you know, pretty interesting numbers. I'm going to grab this; I'm going to paste it over here so we can see that expenses are up for this quarter 2021 over the previous year, which is kind of a bummer, especially when you're thinking that previous year was right in the heart of COVID. But you know, these are interesting financials. My guess is if you're running a private practice, a brick-and-mortar clinic, not a mobile operation, you know, 22 percent is pretty reasonable for rent, supplies, overhead expenses. Salaries and related costs—now this would include your clinical and administrative costs—uh, 62 percent, 63 is really high, but that's the environment we're in. Everybody is overpaying for staff, even though the staff feel like they're underpaid. Um, everybody is spending, spending more than we have available to have a team in place and keep that team satisfied and happy and feeling appreciated with the money we're paying them.
But if you guys are seeing different numbers, I'm going to tell you right now these numbers are pretty well in line with what my clinics have always done. We've seen the biggest rise in expense come from a combination because really what it is is yes, salaries and related costs are up, but then reimbursement is down. Reimbursement per visit is down. Something that I think is interesting here: if you look at these financials, usually they're going to have information on a per-visit basis. Let me just see if I can find that for you guys real quick. I'm going to try a search. 13. So total patient visits increased 19; revenue per visit right here, 102, uh, 93. So they're collecting average revenue per visit about a hundred and three dollars, 102.93. Let me put that number down here: revenue per visit, 102, whoops, 0.93, make that dollars, third quarter, and it was a 105.91 in 2020, 105.91. So I mean, that's a big drop right in terms of percentage. So let's see, hang on, that divided by that, we're going to subtract it from one; it's about a three percent decline, um, three percent decline in collections, so it's pretty significant.
All right, guys, that's it. I just wanted to give you kind of a taste of the numbers, let you see how you can pull financials from publicly shared information. These may or may not relate to you exactly, but if you want more information like this, just shout out at me, and I will catch you guys on the next video.