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Chiropractic practice finance, explained

Six guides on the financial mechanics specific to chiropractic, why collections trail billings so badly, prepaid care plan accounting, cost per visit, personal injury receivables, and owner dependency in valuation.

Chiropractors collect roughly 65% to 78% of what they bill, and sell care that is paid for months before it is delivered.

Two facts define chiropractic finance. Collections run far below billings, so any number built on production overstates the business substantially. And prepaid care plans mean cash arrives well ahead of the cost of delivering the visits, which makes a selling month feel like a good month and a delivery month feel like decline. Handled correctly, both become manageable. Handled the default way, they distort every report the owner sees.

Looking for how we work with chiropractic practices rather than the underlying mechanics? Chiropractic practices →

General information for practice owners, not accounting, tax, legal, valuation or investment advice for your situation. MedPraxis CFO is not a CPA firm, a registered investment adviser, or a business broker. Talk to your own CPA, attorney or adviser before acting on anything here.

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