The Imperative of Growth in Pediatric Business

The Value of Newborns as a Key Performance Indicator

In the context of a pediatric practice, growth is not a luxury but a necessity. The lifeblood of any pediatric practice is its patient base, which continually changes as children age out of the practice around 18 years. This demographic reality creates a constant need for new patients to maintain, let alone grow, a practice. This post will delve into the significance of growth for a pediatric business, focusing on the value of newborn patients as the key performance indicators (KPIs) necessary for ensuring growth.

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Newborns represent a significant source of value for independent practices. In the first two years of life, newborns are scheduled for approximately ten visits without sick visits, compared to an average utilization of three visits across all years for other pediatric patients. Those ten visits account for about $1,500 in revenue for the independent practice. Thus, a steady stream of newborn patients is critical to the financial health of a pediatric practice.

The KPIs for growth in pediatric practice have evolved in the modern healthcare landscape. The number of newborns each month is the lagging measurement; your target should be at least 120 yearly.