Goals without metrics are just wishes.
And wishes don’t pay practice expenses, build wealth, or create the financial security your family deserves.
Last week, your Quarter 3 numbers revealed exactly where your practice stands.
This week, we’re going to set Quarter 4 objectives that transform those insights into measurable results.
The Problem with Traditional Goal Setting
Most practice owners approach Quarter 4 goals like New Year’s resolutions.
“I want to increase revenue.”
“I need better cash flow.”
“I should reduce expenses.”
These aren’t goals.
They’re vague aspirations that lead to vague results.
Real goals have specific targets, measurable outcomes, and defined timelines.
Real goals hold you accountable to actual performance improvements.
The Framework That Creates Results
Effective Quarter 4 goals follow a simple but powerful structure:
Current Metric + Specific Target + Timeline = Accountable Goal
Example of Vague vs. Effective Goals
Vague: “Improve collections”
Effective: “Reduce Days in AR from 68 to 55 by December 31st”
See the difference?
The effective goal tells you exactly what success looks like and when you need to achieve it.
It also makes it impossible to pretend you’re making progress when you’re not.
Setting Your Revenue Per Patient Target
Your Quarter 3 RPP established your baseline.
Now you need to set a realistic but ambitious Quarter 4 target.
The RPP Goal Framework
If your Quarter 3 RPP was below industry benchmarks:
Target a 10-15% increase by year-end
If your Quarter 3 RPP was within normal ranges:
Target a 5-8% increase by year-end
If your Quarter 3 RPP was above benchmarks:
Focus on maintaining performance while improving efficiency
RPP Improvement Strategies
Billing Optimization: Review coding accuracy and ensure you’re capturing all billable services
Service Mix Analysis: Identify higher-value services you could offer existing patients
Fee Schedule Review: Confirm your rates align with current market standards
Efficiency Improvements: Reduce time spent on low-value activities
Each strategy requires different implementation approaches and timelines.
Establishing Your Operating Margin Objective
Your Quarter 3 margin performance determines your Quarter 4 margin goal.
Margin Target Guidelines
Current margin below 15%: Target 2-3 percentage point improvement
Current margin 15-20%: Target 1-2 percentage point improvement
Current margin above 20%: Focus on maintaining while investing in growth
The Two-Path Approach to Margin Improvement
Path 1: Revenue Enhancement
Increase RPP through better billing
Add profitable service lines
Improve patient retention rates
Path 2: Expense Optimization
Audit vendor contracts and negotiate better terms
Eliminate redundant or ineffective expenses
Improve operational efficiency
Most successful practices pursue both paths simultaneously.
Days in AR: Your Cash Flow Goal
This is where Quarter 4 goal-setting gets critical.
Poor AR performance will sabotage every other goal you set.
AR Performance Targets
Current Days in AR above 75: Target reduction to 65 by December 31st
Current Days in AR 61-75: Target reduction to 55 by December 31st
Current Days in AR below 60: Target maintaining current performance
The AR Improvement Action Plan
Week 1: Audit all receivables older than 60 days
Week 2: Implement aggressive collection procedures for 90+ day accounts
Week 3: Review and improve patient payment policies
Week 4: Train staff on collection best practices
Every week you delay AR improvement costs you money you’ll never recover.
The Goal Integration Strategy
Your three primary metrics must work together.
Improving RPP without managing AR leads to revenue growth with cash flow problems.
Focusing on margins while ignoring RPP results in cost-cutting that hurts long-term growth.
Optimizing AR without addressing RPP improves cash flow but limits wealth building.
Successful Quarter 4 performance requires balanced improvement across all three areas.
Setting Realistic Yet Ambitious Targets
The biggest mistake practice owners make is setting goals that are either:
So conservative they don’t drive meaningful change
So aggressive they become demoralizing when missed
The Sweet Spot Formula
Your Quarter 4 goals should feel:
Challenging enough to require focused effort
Achievable enough to maintain motivation
Specific enough to guide daily decisions
If achieving your goals feels easy, they’re too small.
If achieving them feels impossible, they’re too big.
The 90-Day Sprint Mentality
Quarter 4 isn’t a marathon.
It’s a sprint.
Caught you, didn’t I?
You’re probably used to hearing the converse of this metaphor, which is in my opinion an old, tired cliché regurgitated by people that don’t know anything about marathons.
But in case yes, it is a sprint!
You have exactly 90 days to implement changes that will impact your practice for years.
The Sprint Success Requirements
Weekly progress reviews to ensure you’re on track
Monthly metric assessments to adjust strategies if needed
Daily actions that directly support your three primary goals
Quarterly celebration when you achieve your targets
Sprint mentality eliminates the luxury of procrastination.
Your Quarter 4 Goal Setting Worksheet
Complete this framework for each metric:
Revenue Per Patient:
Current Quarter 3 RPP: $______
Quarter 4 Target RPP: $______
Required improvement: ______%
Primary strategy: ________________
Operating Margin:
Current Quarter 3 Margin: ______%
Quarter 4 Target Margin: ______%
Required improvement: ______ percentage points
Primary strategy: ________________
Days in AR:
Current Days in AR: ______ days
Quarter 4 Target: ______ days
Required improvement: ______ days reduction
Primary strategy: ________________
The Implementation Reality
Setting goals is the easy part.
Implementation is where most practices fail.
Next week, we’ll create your comprehensive Quarter 4 roadmap that transforms these goals into daily actions.
Because goals without implementation plans are still just wishes.
Ready to set Quarter 4 goals that actually drive results?
I help medical practices create measurable objectives and implementation strategies that turn financial targets into reality.
Let’s build your Quarter 4 success plan together. Schedule your free practice financial and tax planning analysis today.