One rule is that two products producing equal gross profit margins do not produce equal net profit margins, and two different payers paying the same price for the same product do not provide equal net profits. The problem is that no traditional management information will reveal which combinations of products and payers are most profitable. But, when the manager can identify which product-payer combinations are really most profitable they can pursue the more profitable combinations.
By increasing the sales of the high-yield product-payer combinations in deference to the low-yield combinations both productivity and profitability increase.
The second rule is that Length of Service (the average amount of time that patients receive a service) is directly related to the net profit contribution of a product. The reason is that certain activities associated with acquiring, setting up, and maintaining a customer incurs the same costs regardless of how many months the customer receives service. So, a shorter LOS will be less profitable than a longer LOS. The longer LOS will also accelerate revenue growth, because new patients are being added more quickly than existing patients are being discharged.
By increasing LOS a provider is generating more revenue and consuming fewer man-hours. This results in an increase in productivity and profitability.
The third rule is that Business Process Reengineering eliminates some activities, reduces the time consumed by some activities, and reduces the number of times that some activities are performed. Thus a provider can process more revenue with fewer man-hours or increase productivity. Increasing productivity drives the cost of nearly all other non-labor costs down.
Fourth, management cannot occur without measurement, so software is provided to measure and trend the progress of all parts of Sweet Spot Management. And, Weeks Group stays involved for one year to get the principals integrated into the management of the client.
Sweet Spot Analysis 
