Monday Morning Motivation | Cost of Sales
#8 of 13 questions to ask yourself: How much does it cost me to see a patient?
This, along with your case average, would be an important number to know about your practice. Especially before you start cutting deals with patients, negotiating with an insurance carrier or HMO.
How do you determine this figure? Total monthly overhead divided by the number of monthly patient visits. (Assuming 100% collections.)
Overhead being your monthly office lease payment, your monthly draw, telephone, marketing expenses, insurance, staff salaries, taxes, office supplies, utilities, phone, IT expenses, etc. (Don't forget profit and retirement.)
Monthly patient visits being how many patients you see in a month.
Then do the math. If you don't like the number you have three choices. You can reduce your overhead, increase the number of patient visits or collect more for each visit.
Each has its pros and cons. Or do all three.