Predictive Modeling: Enhancing Clinic Growth and Decision-Making

You’ve probably noticed that we’ve tried to stress the importance of the Predictive Modeling Tool on our KPIs page.

You may be wondering what this really means. What is this Predictive Modeling Tool?

Kevin Vought’s Expertise in Modeling

Kevin Vought has spent his career developing and running computer-generated models for a number of situations.

As a graduate student, he worked at Los Alamos National Laboratory developing a contaminant transport model. It was used to evaluate how tracers could move through the groundwater at the Nevada Test Site.

Throughout his career, he’s gone on to develop atmospheric, coastal, groundwater, and other contaminant transport models.

He’s received numerous accolades including awards and a promotion to a global director position at a large international company for his modeling work.

These models helped save millions of dollars by guiding construction, treatment, and other development projects in more cost-effective directions than how they were initially planned.

The Predictive Modeling Tool for Clinics

When his wife’s clinic began to really grow, he realized he could help guide and direct the growth by developing a predictive model that simulated the company.

In the model, changing specific parameters affects other parameters based on the mathematical relationship between them.

As with the other models he built and utilized throughout his career, this one earned them tens, if not hundreds of thousands of extra dollars. It also grew the company in a more appropriate direction.

Making Informed Expansion Decisions

The model can help you make complex decisions – such as when it’s time to expand.

It will account for the additional rent; the additional variable expenses like toilet paper, soap, and electricity; and the income that will be added from any waitlist you may have.

The aforementioned takes into account the different rates of reimbursement each new client may bring in through their insurance; the cost of each new provider; and the cost of any new administrative employees that may be required.

With the help of the model output, you may need to hold off on expanding. Perhaps you can expand more quickly than you thought due to the wait list income. A simple change may also help keep the costs down.

Whatever the result, you can know the outcome before you go beyond the point of no return.

Predictive modeling is a powerful tool that can help clinic owners make well-informed decisions about their growth and operations.

Additionally, there are numerous simpler and equally complex scenarios the model can be used to simulate. Contact us if you have any specific questions about this or any of our other KPIs!