Healthcare Financial Model Template

With the assumptions in place, move to the Provider Staffing & RVU Model sheet and enter each provider's visit schedule and visit-type mix. Review the wRVU targets against the MGMA benchmarks shown — if a provider is projected to produce significantly fewer wRVUs than the median for their specialty, that's worth understanding before you finalize the model. Then work through the Expenses & Overhead sheet using last year's actual expenses as your baseline, adjusting for any planned changes: a new hire, a lease renewal, a transition to a new EMR. The AR sheet will model your collections timing automatically once revenue is set up. Your first complete model review should take 60–90 minutes total.

The financial metrics that define a healthy medical practice are distinct from other service businesses. Days in accounts receivable — how long it takes to collect a dollar of billed charges — should be under 35 days for a well-run practice; above 50 days typically signals billing workflow problems, excessive claim denials, or understaffed collections. Net collection rate, the percentage of net charges actually collected, should be 95–98% for commercial payers; below 92% means money is being written off that shouldn't be. Provider productivity measured in wRVUs per year provides a specialty-specific benchmark that eliminates the distortion of payer mix — a physician producing 5,200 wRVUs annually is performing similarly whether they're in a commercial-heavy suburban practice or a Medicaid-heavy safety-net clinic. These are the numbers that practice consultants, healthcare lenders, and DSO acquisition teams use to evaluate financial health.