Professional services
Medical Practice Revenue Per Provider Calculator
Measures revenue per provider, where payer mix can explain the whole difference.
Result
An average hides a lot. One strong performer and one struggling one produce the same average as two mediocre ones, and the management action is completely different.
Get a Free Business AuditHow the calculation works
Collected revenue divided by providers, with the contribution each makes after their own cost. The measure is useful within a practice and poor across practices, because it blends volume, payer mix and specialty, and two providers with identical productivity can show very different figures from mix alone.
What moves the number
- Visits completed per provider.
- Payer mix of each provider's panel.
- Visit mix and complexity.
- Support and rooms available to each provider.
Where this one goes wrong
Before concluding anything about a provider's performance, check the payer mix of their panel, because a provider seeing more patients from lower-paying payers will show lower revenue at identical productivity, and treating that as a performance issue is both wrong and corrosive. Decompose into visits and revenue per visit first. Support and room availability is the other explanation worth ruling out, since a provider with less of either cannot produce the same volume regardless of effort.
Before you quote
- Decompose into visits and revenue per visit.
- Check panel payer mix before judging performance.
- Check rooms and support available to each provider.
Questions
About this calculator
Is revenue per provider a fair performance measure?
Not on its own, because it blends volume, payer mix and complexity. A provider whose panel has more lower-paying payers shows less revenue at identical productivity, and treating that as a performance issue is both wrong and damaging.
How should the figure be read?
Decomposed into visits completed and revenue per visit, with panel payer mix checked. That separates what the provider controls from what the contracts determine, and only the first is a performance question.
What else explains a low figure?
Rooms and support. A provider with fewer rooms or less clinical support cannot produce the same volume however hard they work, and that is a structural problem with the practice rather than with the provider.
The formula
revenue per unit = revenue / number of units; contribution = gross profit - cost of the unit
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Please keep the attribution line. It is the only thing we ask in return.
How to use this calculator
- Number of providers. Enter your own figure; the page starts at 5.
- Revenue per month ($). Enter your own figure; the page starts at $68,000.
- Cost of one provider per month ($). Wages with burden, vehicle, tools, phone.
- Gross margin (%). Enter your own figure; the page starts at 58%.
The result updates as you type, so you can try a figure, see what it does to revenue per provider, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Number of providers | 5 |
| Revenue per month | $68,000 |
| Cost of one provider per month | $7,200 |
| Gross margin | 58% |
What comes out
| Result | Value |
|---|---|
| Revenue per provider main result | $13,600 |
| Per provider per year | $163,200 |
| Gross profit each provider generates | $7,888 |
| Contribution after their own cost | $688.00 |
Each provider brings in $13,600 a month and contributes $688.00 after covering their own cost. Anything below zero there means adding people makes things worse, not better.
How sensitive the answer is
Holding everything else steady and changing only revenue per month, this is what happens to revenue per provider. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Revenue per month ($) | Revenue per provider |
|---|---|
| $34,000 | $6,800 |
| $51,000 | $10,200 |
| $68,000 example above | $13,600 |
| $102,000 | $20,400 |
| $136,000 | $27,200 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Number of providers
- A number, between 0 and 2000, starting at 5.
- Revenue per month ($)
- A money amount, starting at $68,000.
- Cost of one provider per month ($)
- Wages with burden, vehicle, tools, phone.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 58%.
What the results tell you
| Result | What it is |
|---|---|
| Revenue per provider | The headline result. A money figure. |
| Per provider per year | A money figure. |
| Gross profit each provider generates | A money figure. |
| Contribution after their own cost | A money figure. |
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.