Revenue Building Blocks: Which Metrics Are Most Meaningful (PART 1)

When it comes to tracking financial key performance indicators (KPIs), there are countless metrics you could focus on—Revenue, Profitability, Appointment Volume, and more.

But, in measuring the KPIs that are most valuable when evaluating the financial and operational performance of a provider or practice, which metrics are the most important?

When tracked consistently at both the provider and practice levels, Utilization Percentage & Revenue per Hour provide a clear, actionable picture of productivity, and show where you may have opportunities to help your providers and practice grow.

Utilization Percentage

At Maven, we define Utilization Percentage as:

Utilization % = Hours Worked ÷ (Hours Available − Blocked Time)

What Do These Terms Mean?

  • Hours Worked: The amount of time a provider spends actively seeing patients.
  • Hours Available: The total time a provider is present in the office and available to treat patients.
  • Blocked Time: Time blocked off for non-patient care-related tasks like meetings,training, breaks, or administrative work.

Why Utilization Percentage Matters

Utilization is one of the clearest indicators of how busy the provider is. It’s not just a productivity metric—it’s a tool for making smarter operational and staffing decisions.

Let’s break down two major reasons this KPI is so valuable:

It Helps You Understand Provider Workload

If a provider is consistently under 50% utilization, that’s a sign it may be time to reassess their schedule. Are there opportunities to reallocate their time toward other valuable tasks, such as patient follow-ups, internal projects, or training? Do we need to reassess our marketing efforts to attract more patients to our door? Should we review our internal rebooking and patient follow-up procedures?

On the flip side, if a provider is running at 85–95% utilization, that can be a red flag for burnout. Remember: 75–80% utilization is effectively full capacity— 100% utilization would be like seeing patients back-to-back from 8 to 5, with zero downtime. As a business owner or practice manager, it's your responsibility to know when your providers are stretched too thin—or when they have more capacity than you realized. Having an accurate method for tracking Utilization Percentage can do just that!

It Informs Smarter Hiring Decisions

Utilization % can also help you avoid a big (and expensive) mistake that we’ve seen practices make: hiring too early.

Here are a couple of good questions to ask yourself if you’re considering bringing on a new provider:

1. Are ALL my providers full (75-80% Utilized)?

2. Are the providers’ schedules booked out weeks in advance?

If the answer to both of these questions is “Yes,” then it may be time to bring on a new provider. That said, other factors—like seasonality, service mix, and demand for services you don’t currently offer—should also be taken into account. These may either support or override the decision to add a provider, even if both answers are “Yes.”

Hiring too quickly can be a sneaky vampire to your bottom line. This is why knowing your utilization is important. Utilization provides the data needed to understand the current workload, and help make an informed business decision about bringing on new providers.

The Bottom Line

Utilization percentage isn’t just a nice-to-have metric—it’s one of the most practical tools for balancing provider productivity, protecting your team from burnout, and scaling your practice at the right time.

Revenue/Hour

Revenue per Hour is simply defined as:

Revenue per Hour = Total Revenue Generated ÷ Hours Worked (See Utilization section above for how we define Hours Worked)

This KPI tells you how much revenue a provider produces during each hour of active patient-facing work. It's a straightforward, yet incredibly powerful metric used to assess both individual and overall productivity.

Why Revenue per Hour Matters

Knowing both Utilization and Revenue per Hour allows you to calculate how much revenue a provider is expected to produce on a daily, weekly, monthly, or annual basis.

This insight is important for two key reasons:

Revenue Forecasting

These KPIs allow you to forecast revenue with accuracy. Instead of guessing or using broad industry averages, you can create projections based on your actual provider performance. This makes your financial planning significantly more reliable and precise.

Goal Setting

Whether you’re setting production targets for a specific provider or building long-term growth goals for the practice, Revenue per Hour provides a clear and data-driven foundation. It ensures your goals are both ambitious and attainable—based on the real output of your team rather than best-case scenarios or assumptions.

If you know how much revenue a provider typically generates per hour—and you know how many hours they’re scheduled to work—you can set expectations that are grounded in reality, not guesswork.

The Bottom Line

When you think of building blocks, many images may come to mind. But when it comes to revenue, understanding the foundation is essential before stacking anything on top.

That foundation begins with key metrics like Utilization Percentage and Revenue per Hour—critical indicators that help you truly understand where your revenue is coming from and how to grow it sustainably. In part II, we will be discussing two more foundational building blocks of revenue (Appointments and Appointments/Hour).

If you’re not currently tracking these two metrics or would like support calculating and interpreting them, we’re here to help. Visit our website to book a complimentary discovery call and learn how we can help improve your practice’s efficiency and financial health.

Contact Maven

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