Quality-of-Care Ratios

How to Calculate Quality-of-Care Ratios

To determine the ratio, use the number of invoices for any given period of time as the denominator. The equation looks like this:

Take the total revenue for a chosen center (nutrition, dentistry, laboratory, or imaging) for a given timeframe (most practices run this weekly and monthly), and divide that number by the total number of invoices. That gives you the ratio.

Here's a real example from an AAHA practice: The practice did $22,987.73 in total dental revenue for the month. Dividing that by the number of invoices for the month, which was 1,132, they got a ratio of 20.

What Quality-of-Care Ratios Tell You

Dividing the total dental revenue by total number of invoices gives you an average dollar spent per client. But the secret to using these ratios is to focus on the number itself, not the dollar figure. The ratio represents the number of opportunities you and your team have to educate your clients on best medicine. Tracking these ratios will show you where there’s room for improvement. The higher the number, the better you’re doing.