The Revenue Wheel™ by Evolution Consultants
What is The Revenue Wheel?
Ever wonder why the practice cash flow feels like a bumpy ride? The wondering eye usually centers on the cash of the practice. What the revenue wheel demonstrates is the many working pieces of the revenue cycle that contribute to the cash result that the practice is seeing in the bank.
A gross collection percentage is as unique to practice as a fingerprint is to a person. So many variables contribute to the point that no two practices are the same. Benchmarks are good to drive you in the right direction but cannot get you to the exact destination. Benchmarks are the equivalent of telling someone to drive north to get to your house without giving them your address.
The foundation of our practice management and revenue cycle management approach is outlined in our construct of the Revenue Wheel. To the right is a diagram showing the eight (8) spokes of the Revenue Wheel. The revenue wheel is the engine of your cash flow. It starts from the moment the patient schedules an appointment, with proper demographics, and concludes with reporting of performance.
The overall goal of a revenue wheel is to be as large as possible (i.e., a score of 10 on each spoke), but balanced. If the practice has a smaller wheel, but all spokes get a similar score, then the wheel is considered balanced, but we must focus on equal growth in the spokes of the wheel for increased performance.
